1.

0 Introduction
The insurance sector in India has experienced a 360-degree journey over a
period of more than a hundred years. Its transition from an open competitive
sector to nationalisation and then back to a liberalised market characterises this
phenomenon. The insurance sector was brought under the government wrap
within ten years of independence

With largest number of life insurance policies in force in the world,

Insurance happens to be a mega opportunity in India. Its a business growing at
the rate of 15-20 per cent annually and presently is of the order of Rs. 450 billion.
Together with banking services, it adds about 7 per cent to the countrys GDP.
Gross premium collection is nearly 2 per cent of GDP and funds available with
LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover,
And this part of the population is also subject to weak social security and pension
systems with hardly any old age income security. This, itself is an indicator that
growth potential for the insurance sector is immense.
Economic reforms have revolutionized the insurance sector. R.N. Malhotra
Committee Report has opened up the insurance sector for the private player with
foreign tie-ups Insurance sector reforms In 1993, Malhotra Committee, headed
by former Finance Secretary and RBI Governor R.N. Malhotra, was formed to
evaluate the Indian insurance industry and recommend its future direction. The
Malhotra committee was set up with the objective of complementing the reforms
initiated in the financial sector. The reforms were aimed at creating a more
efficient and competitive financial system suitable for the requirements of the
economy keeping in mind the structural changes currently underway and
1

recognising that insurance is an important part of the overall financial system

where it was necessary to address the need for similar reforms In 1994, the
committee submitted the report and some of the key recommendations made by
the committee.
The Government of India liberalized the insurance sector in March 2000
with the passage of the Insurance Regulatory and Development Authority (IRDA)
Bill, lifting all entry restrictions for private players and allowing foreign players to
enter the market with some limits on direct foreign ownership. Under the current
guidelines, there is a 26 percent equity cap for foreign partners in an insurance
company. There is a proposal to increase this limit to 49 percent.
So far as life insurance is concerned LIC of India was holding monopoly in
the market. In response to changing scenario LIC of India has to change
organisation structure technology, HRM, IR, Marketing and Infrastructure. In each
and every respect LIC of India tries to change. It is inevitable to uphold the No.1
Position in the market. Proposed study will take overview of current status of LIC
of India. It is comparative study of LIC of India in Response to Liberalisation.

1.1

History of Life Insurance

2

The business of life insurance in India in its existing form started in India in
the year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta, which failed in 1834. However, the success of Indian life insurance can
be traced back roughly to the second decade of the nineteenth century when the
Madras Equitable began transacting life insurance business in the Madras
Presidency in 1829. After that, it was a rather dull phase with regard to the
growth in life insurance enterprise. This dullness was due to the very critical
phase through which the British insurance companies were passing due to
mismanagement and inexperience, thus resulting in the failure of several British
offices before 1870 and leading to the enactment of the British Insurance Act,
1870. Till the 70s of the nineteenth century, insurance had found no real place in
the scheme of things and only certain European companies operating in parts of
India did life insurance business on some scale. But Indian enterprise in this
sphere later began to expand and in the last three decades of the nineteenth
century the following companies were started in the Bombay Presidency:
a) Bombay Mutual (1871)
b) Oriental (1874)
c) Empire of India (1897)
Few other companies were also set up in other parts of India. However,
this period was dominated by foreign insurance offices, which did good business
in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London
Globe Insurance. The Indian offices that were set up during this period came up
the hard way and had to struggle against the prevailing prejudice against life
insurance and natural ignorance of the people. The recorded history of Insurance
business in India, however, began in 1914 when the Government of India started
publishing returns of Insurance Companies in India. The Indian Life Assurance
Companies Act, 1912 was the first statutory measure to regulate life insurance
business.

Later in 1928 the Indian Insurance Companies Act was enacted to enable
the Government to collect statistical information about both life and non-life
insurance business transacted in India by Indian and foreign insurers including
provident insurance societies. In 1938, with a view to protecting the interest of
insuring public, the earlier legislation was consolidated and amended by the
Insurance Act 1938 with comprehensive provisions detailed and effective control
over the activities of insurers. The Indian Economy Centre for Civil Society 380.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However,
there were a large number of insurance companies and the level of competition
was high. There were also allegations of unfair trade practices. The Government
of India, therefore, decided to nationalise the insurance business. An Ordinance
issued on 19th January 1956 nationalised the Life Insurance sector and Life
Insurance Corporation of India (LIC) came into existence in the same year.
When parliament set up LIC as a monopolistic public undertaking, it was
argued and believed that elimination of competition and the malpractice that
competition has given rise to, would lead to:
a) Better and more economical management of the Business of
life

insurance.

b) Reduction in administrative expenses.

c) Improvement in the quality of service.
d) Increase in volume of business.
e) Maximisation of social advantages that insurance can provide
through higher returns on Investments of life fund, consistent with safety
and liquidity of the invested funds.
The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident
societies. Since then LIC was the only player till the late 90s when the Insurance
sector was reopened for the private sector.

In the current competitive scenario we can see the intense competition in

the insurance sector. Now LIC of India is no more in the monopolistic situation. It
is true there is no substitute for the insurance but now customer has multiple
choices, so far as product and brand is concern

1.2

Economic reforms and LIC of India

Economic reforms have taken place in 1991. Indian economy was going to

be revolutionized. So far as insurance sector is concern India was huge market in

the eye of global players. WTO was on the verge of starting a trade across the
border. India had to respond the changing scenario. In this changing scenario
there was a proposal to open up insurance sector.
To study the entire issue R N Malhotra committee was appointed by
Government of India. Malhotra Committee, headed by former Finance Secretary
and RBI Governor R.N. Malhotra, was formed

1.2.1

Terms of Reference for Malhotra Committee

(a) To suggest the structure of the insurance industry, to assess the
strengths and weaknesses of insurance companies in terms of the
objectives of creating an efficient and viable insurance industry, to
have a wide coverage of insurance services, to have a variety of
insurance products with a high quality service, and to develop an
effective instrument for mobilization of financial resources for
development.
(b) To make recommendations for changing the structure of the insurance
industry, for changing the general policy framework etc.
(c) To take specific suggestions regarding LIC and GIC with a view to
improve the functioning of LIC and GIC.

(d) To make recommendations on regulation and supervision of the

insurance sector in India.
(e) To make recommendations on the role and functioning of surveyors,
intermediaries like agents etc. in the insurance sector.
(f) To make recommendations on any other matter which are relevant for
development of the insurance industry in India.

1.2.2

Findings of the Malhotra Committee

1) The vast marketing and services network of LIC was inadequately
responsive

to customer needs;

2) Insurance awareness was low among the general public;

3) Marketing of life insurance with reference to the customer needs left
much to be desired;
4) Term assurance plans were not being encouraged and unit linked
assurance was not available;
5) Insurance covers were costly and returns from life insurance were
significantly lower compared to other savings instruments due to
a) Excessive government directed investments of LIC funds;
b) The marketing organisation was weak and turnover of agents
extremely high;
c) Development officers concentrated on their incentives to the
neglect of training the agents and building up an efficient
agency organisation
d) There was excessive lapsation of policies
6) LIC management was top heavy and excessively hierarchical,
especially at the central and the zonal offices, and was overstaffed;
7) Work culture within the organisation was unsatisfactory;
8) Trade unionism had contributed to the growth of restrictive practices;
9) Failure to adequately computerise had seriously affected the efficiency
of the organisation and the quality of customer service;

10) The functioning of LIC was constrained in some respects as it was

covered by the definition of State as well as governmental
interference.

1.2.3

Recommendations of the Malhotra Committee

In 1994, the committee submitted the report and some of the key

recommendations are as under:

1) Structure
Government stake in insurance Companies to be brought down to 50%
All the insurance companies should be given greater freedom to operate
Improvement of the commission structure for agents to make it effective
Instrument for procuring business specially rural, personal and
Non obligatory lines of business;
Setting up of an institution of professional surveyors/loss assessors;
Provisions for co-operative societies for transacting life insurance
business in states;
2) Competition

Insurance Company should be allowed to operate in each state

Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the industry

No Company should deal in both Life and General Insurance

through a single entity

Foreign companies may be allowed to enter the industry in

collaboration with the domestic companies

Postal Life Insurance should be allowed to operate in the rural

market

Only One State Level Life Insurance company allowed to operate

in each state.

3) Regulatory Body

The Insurance Act should be changed

An Insurance Regulatory body should be set up

Controller of Insurance (Currently a part from the Finance Ministry)

should be made independent

Functioning of Tariff Advisory Committee (TAC) as a separate

statutory

body;
4) Investments

Mandatory Investments of LIC Life Fund in government securities to

be reduced from 75% to 50%

5) Customer Service

LIC should pay interest on delays in payments beyond 30 days

Insurance companies must be encouraged to set up unit linked

pension plans

Computerisation of operations and updating of technology to be

carried out in the insurance industry The committee emphasized that in

order to improve the customer services and increase the coverage of the
insurance industry should be opened up to competition.

improvement of the commission structure for agents to make it

effective instrument for procuring business specially rural, personal and

non-obligatory lines of business;

marketing of life insurance to relatively weaker sections of the

society and specified proportion of business in rural areas;

But at the same time, the committee felt the need to exercise caution as
any failure on the part of new players could ruin the public confidence in the
industry. Hence, it was decided to allow competition in a limited way by
stipulating the minimum capital requirement of Rs.100 crores. The committee felt
the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies
with economic motives. For this purpose, it had proposed setting up an
independent regulatory body

2.0

Regulatory Framework of Life Insurance

Regulation of insurance companies began with the Indian Life Assurance

Companies Act, 1912.In 1938; all insurance companies were brought under
regulation when a new Insurance Act was passed. It covered both life and nonlife insurance companies. It clearly defined what would come under life and nonlife insurance business. The Act also covered, among others, deposits,
supervision of insurance companies, investments, commissions of agents and
directors appointed by the policyholders. This piece of legislation lost significance
after the insurance business was nationalised in 1956 (life) and 1972 (non-life),
respectively.
When the market was opened again to private participation in 1999, the
earlier Insurance Act of 1938 was reinstated as the backbone of the current
legislation of insurance companies, as the IRDA Act of 1999 was superimposed
on the 1938 Insurance Act,
After the release of the Malhotra Committee report in 1994, changes in the
insurance industry appeared imminent. Unfortunately, changes in the central
government slowed down the process. The dramatic climax came on 7
December 1999 when the government finally passed the Insurance Regulatory
and Development Authority (IRDA) Act. This Act repealed the monopoly
conferred to the Life Insurance Corporation in 1956 and to the General Insurance
Corporation in 1972. The authority created by the Act is called the Insurance
Regulatory and Development Authority (IRDA).
Below summarises some of the milestones in Indias insurance regulation.

10

2.1

Milestones of insurance regulations in the 20th

Century

Year

Significant regulatory event

1912

First piece of insurance regulation promulgated Indian Life

Insurance Company Act, 1912

1928

Promulgation of the Indian Insurance Companies Act

1938

Insurance Act 1938 introduced, the first comprehensive legislation

to regulate insurance business in India

1956

Nationalisation of life insurance business in India

1972

Nationalisation of general insurance business in India

1993

Setting-up of the Malhotra Committee

1994

Recommendations of Malhotra Committee released

1995

Setting-up of Mukherjee Committee

1996

Setting-up of an (interim) Insurance Regulatory Authority (IRA)

1997

Mukherjee Committee Report submitted but not made public

1997

The Government gives greater autonomy to LIC, GIC and its

subsidiaries with regard to the restructuring of boards and flexibility

11

in investment norms aimed at channeling funds to the infrastructure

sector
1998

The cabinet decides to allow 40% foreign equity in private

insurance companies 26% to foreign companies and 14% to nonresident Indians (NRIs), overseas corporate bodies (OCBs) and
foreign institutional investors (FIIs)

1999

The Standing Committee headed by Murali Deora decides that

foreign equity in private insurance should be limited to 26%. The
IRA Act was renamed the Insurance Regulatory and Development
Authority (IRDA) Act 1999 Cabinet clears IRDA Act

2000

President gives assent to the IRDA Act

2.2

IRDA as enabler
In then new market set up the IRDA role will be that of an enabler. The

new insurance will conduct insurance business in India according to the healthy
norms prescribed by the IRDA. Regulations for insurance intermediaries will
specify sales norm.

Efficiency will be promoted in the conduct of insurance

businesses. Professional organization connected with insurance business will be

regulated. The role of IRDA, besides the regulating the market, is also intended
to develop it

2.2.1

The duties and power of IRDA

To issue a certificate of registration to applicant and to renew, modify,

withdraw or cancel it.
To protect the interest of policy holders in matters concerning the
assignment of policy, nomination, insurable interest, settlement of claims,
surrender value of policy and other terms and conditions of the contract of
insurance.

12

 Specifying requisites qualifications and practical training for insurance

intermediaries or agents.
Specifying code of conduct
Promoting efficiency in conduct of insurance business.
Levying fees and other charges for carrying out the purpose of the act.
Undertaking investigations including the audit of the insurance, insurance
intermediaries etc..
Prescribing the form and manner in which books of account shall be
maintained.
Regulating investment of funds by insurance companies
Adjudication of disputes between insurer and intermediaries or supervising
the function of tariff advisory committee.
To specify the percentage of premium income of the insurer to finance the
scheme for promoting and regulating profession organizations
Specify percentage of insurance business to be undertaking the rural
sector or social sector
Regulations.
Licensing of insurance agents
Rural, social sector regulations
Appointed actuary regulations
Valuations of assists, Liabilities and solvency margins
Insurance advertisement and disclosure
Reinsurance life
Protection of policy holders interest regulation 2001
Rural, social sector regulations
Makes it obligatory on the part of insurers to cater the rural and socially
backward sectors of the country
Definition of rural sector
13

 Place which has population of not more than 5000 people

Density of population not more than 400 per square KM.
At least 75% of male population engaged in agriculture
Definition of social sector
Includes
-

unorganised sector

informal sector

economically vulnerable or backward classes

other categories of persons

(both rural and urban areas)

Obligations for a new life insurance company

for rural sector
-

5% new business in the first year

7% new business in second year

10% new business in third year

12 % new business in fourth year

15% new business in fifth year

for social sector

-

5000 lives in the first year

7500 lives in the second year

10000 lives in the third year

15000 lives in the fourth year

20000 lives in the fifth year

14

Penalties for non compliance

Penalties prescribed under section 105 B and section 105 C of
insurance act 1938.
This can include penalty in cash with imprisonment up to 3 years under
section 105B
Can be penalty in cash and cancellation of certificate of registration in
case subsequent and continued failure under section 105C

15

3.0

LIC Of India at a Glance

LIC of India had started the journey as government owned public sector in
1956. That was the period of the nationalisation. LIC of India remained
successful as a public sector and achieved the peaks. Due to global
environmental changes, insurance sector was opened up and now LIC of India
has to compete with the private players. LIC of India is no more in the monopoly
situation. Over a period of the time LIC of India became a giant and strong
organization. This is a brief overview of current status of LIC of India.

3.1

Vision, Mission, Values, Culture & Commitment

Vision

To transform ourselves into a Trans nationally competitive financial conglomerate

of significance to societies and the Pride of India.

Mission
To ensure 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.
16

Values

Culture

Caring and Courtesy

Initiatives and Innovation
Integrity and Transparency
Quality and Returns
Participation and Relationship
Trust worthiness and Reliability

Agility
Adaptability
Collaboration
Commitment
Discipline
Empowerment
Sensitivity

Commitments
To The Community:

Provide insurance cover and financial security to every insurable segment

including the socially and economically weaker sections of the society;

Meet its insurance needs in consonance with the changing social and
economic environment;

Conduct all aspects of our business keeping in view the interest of the
community and the national priorities;

To The Customers

Provide them prompt, efficient and courteous service;

Act as trustees of their funds and invest them to their best advantage;

Conduct our business with utmost economy and on sound business

principles;

Build and maintain enduring relationship;

Keep them informed about our products, services etc.

To The Workforce

Promote a sense of participation and make them partners in progress;

Work towards ensuring their job satisfaction and sense of pride;

17

Provide an environment and the opportunities for growth to enable them to

realize their full potential;

Take steps to develop professional skills to enable them to handle their

assignments more efficiently.

3.2

LIC of India Overview

LICS STRENGTHS

Brand equity
Guaranteed by the government of India
Wide reach
Human resources
Wide range of products
High tech operations and services
Cost leadership / economies of scale

Offices in India

as on 31st march 2005 LIC of India had

7

Zonal offices

101

Divisional offices

2048

Branch offices

69

P & GS Units

International operations

LIC of India directly operates through its

Branch officies

Mauritius

at

Port Louis,

Fiji

at

Suva & Laukota

UK

at

Wembley

18

Foreign subsidiaries / joint venture companies

Diversified activities

LIC (International) BSC (C)

Bahrain

LIC (Nepal) Ltd.

Nepal

LIC (Lanka) Ltd.

Shrilanka

LIC (Mauritius) Offshore

Mauritius

LIC Housing Finance Ltd.

6 Regional Offices, 16 Back Offices,
100 Camp Offices
LIC Mutual Fund Trustee Co. Pvt. Ltd.
Jeevan Bima Sahyog Asset
Management Company Ltd.
19 Offices, 160 Chief Agents
100 centres across India,
4000AMFI certified Agents.

Personnel & Employee

Staff strength
1,14,588 Employees
Recruitment
179 Assistant Administrative officers
2

Security Officers

200 Actuarial Apprentices

90 Chartered Accountants
25 Actuarially Qualified Officers
50 MCAs in the cadre of AA0
Empowerment of women
3017 Lady Officers
8

Lady Officers in senior rank of ZM

19

258

Lady Development Officers

20333 Lady class 3 & class 4 Employee

Reserved Categories
173 SC/ST/OBC Employees recruited
3% for the P. H.
14.5 % for the Ex - servicemen in Cl. 3
24.5 %

for the Ex servicemen in Cl. 4

20

3.3

Profile- LIC of India

21

22

3.3.1

Awards received by LIC:

Awaaz Consumer Awards 2005 given by CNBC-TV 18- Best Life

Insurance Brand in

India an award given on the basis of a market /consumer survey done in

conjunction with AC Neilson ORG Marg and Economic Times.

Golden Peacock Global Award for Corporate Social Responsibility in

emerging economies (Public sector) for the year 2005 by World Council
for Corporate Governance.

LIC adjudged No.1 in Net Worth & Net profit and No.2 in Total Income
among the TOP 500 companies of India by Dun & Bradstreet.

Outlook Money Award BEST LIFE INSURER 2004.

Golden peacock innovative product/service award for the year 2004.

Adjudged Number One Service Brand in India by Economic Times and AC

Neilsen Org Marg for the year 2004 for the second consecutive year.

GOLDEN PEACOCK AWARD for being the Winner of Special

Commendation Certificate for Excellence in Corporate Governance (PSU
sector).

Adjudged No.1 Insurance Company Award at the Businessworld Most

Respected Company Awards 2004.

LIC Adjudged Superbrand India 2003/04 and 2004/05

Largest

Institutional Investor in India and Second largest in Asia among

insurers.

(Source : AsianInvestor)

LIC - An Institution Builder promoting many financial and insurance

institutes like NSE,

NCDEX, LIC Mutual Fund, Stock Holding Corporation of India, National

Insurance Academy, Insurance Institute of India etc.

LIC is the second largest PC user in the country.

23

LIC has been given the best IT user award in insurance sector for the year
2002 by

NASSCOM and indiatimes.com

LIC is the number one insurer in the world in volume and has sold around
24 m policies in 2004-05.

Largest Financial Institutional Investor both in equity market and term

loans.

LIC posted a growth rate of around 42 % in premium income for the year
2004-05.

99.4 % of the branches networked across the country with all the
branches totally mechanized.

LIC has moved towards modernization of their offices across the country.

24

4.0

Changing Face of LIC Of India

4.1

H.R. Practices in Competitive scenario

Private Players has sparked off massive enthusiasm in the financial sector

and the market sentiment is all time high. Market is being opened up due to the
economic reforms in India, New Players are coming in, so it is the boom time for
employment opportunity also. According to the IRDA million job opportunities
expected to be generated in the insurance sector.
4.1.1

Recruitment & Retention of employee

After information technology insurance sector is likely to be major area of

employment in the coming years. Private players are expected to recruit quality
manpower for their key positions as well as middle level and down the line i.e.
agency level also. So they are looking at the employees working in LIC of India.
High employee turn over has been started in the LIC of India. Top executives or
officers and middle level personnel of LIC of India started leaving the company
and they have been joining the private players. Competent people from different
area like marketing, finance, HRD, IT and actuaries will be high in demand. All
these causes will bring high employee turnover and it will make HR practices
complex. Recruitment and Retention of employee became a prime concern in HR
practices.
Due to the liberalize scenario, market competition is intensive and jobs
become challengeable. In this scenario LIC of India has to change their
traditional recruitment process and policy. LIC of India has to hunting B school for
searching out talented person who can take up the challenging job. Taking

25

candidate from B school or from other professional institute and tapping good
persons from the corporate sector should be high on their agenda of recruitment
policy. HRD department must be very strong visionary and proactive. It is true
that LIC of India has not the flexibility and autonomy to increase the salary
structure and retain the employee.
In current competitive scenario, cost efficiency is quite necessary. To be
cost efficient is, the trend toward utilizing higher technology is increasing.
Automation is taking place. In this scenario down sizing become so much
essential, VRS schemes are offered by the employer to strengthen sown sizing.
So far as LIC of India is concern, there is no recruitment since last 10 years at
the operational level. To explore the alternaftive distribution channel LIC of India
has stopped recruitment of development officers. Due to interventionof the trade
union LIC of India is not able to introduce effective VRS scheme. With taking all
these things in to consideration, recruitment and retention of talented and
efficient employees became a prime issue.
4.1.2

Training and development

All employees at different cadre in LIC of India are to be trained at the time of
entry. At the initial stage, induction training will be provided. Afterward refresher
training will be given after 2 or 3 years. On promotion to higher cadre again
introduction training will be given to the promotees.
LIC of India has training centres they are mainly as under
(1) Zonal Training Centres at zonal level (ZTC)
(2) Sales Training Centres at state level (STC)
(3) Divisional Training Centres at division level (DTC)
(4) Agent Training Centres (ATC)
(5) Management Training Centres (MDC)

26

ZTCs

STCs

DTCs

Development 741

1004

28

Officers
Agents

64336

15640

6060

ATCs

ETIs

Total

564

2337

36617

836

123489

In-House Training
Training Centres
Management Development Cetre
National Insurance Academy
Zonal Training Centre
Total
External Training
Within the Country
Abroad
Total
Grand total

No. of Personnel Trained

2003-04
2592
1663
29939
34194
411
25
436
34630

2004-05
2045
2057
28676
32778
580
26
606
33384

As on 31st March 2005 there are 7 Zonal Training centres, 25 Sales

Training Centres, 101 Divisional Training Centres, and 508 Agents Training
Centres. LIC of India also has On Line Training facility. Apart from the above
figure, the Divisional Training Centres and Agents Training Centres imparted
training to 94856 and 100976 new agents respectively. Under the Mass Training
Programme organized by the Branch/Division/Zonal offices, 1112 Development
officers and 64046 agents were trained during the financial year 2004-2005.
Management Development centres (MDC), the apex in-house training
institute of LIC of India, strives to strengthen the entrepreneurial ability of the
Managers by equipping them with the skill required to improve managerial

27

perception and practices. The year 2004-2005 was an eventful year for MDC
which entered into new era of growth by receiving IS/ISO 9001-2000 Certification
for its Program Designing, Development and Delivery of Training.
In addition to these, LIC of India having tie up with IIM Indore for providing
training to the employees on Management sciences. The National Insurance
academy, Pune is providing training to the class-1 officers in specialized subjects.
To train the field force LIC of India sending Development Officers and Agents to
the IFCERT, Pune and JVT,Jaipur.
In post liberalization scenario training become an essential part of the HR
Practice of LIC of India.
4.1.3

Performance Appraisal
Development Oriented Performance Appraisal Scheme (DOPA) is being

implemented from 1st April 2001 to evaluate the performance of employees. All
class-1 officers performance is based on their self appraisal in consultation with
the appraiser every year.
This system is yet to be implemented to other cadres. The performance of
the clerical and class-4 staff is judged by the confidential reports (CRs) given by
the controlling officers. The promotion to the employees based on the CRs.
So far as Development Officers are concern LIC of India has introduced
Growth Oriented Performance Appraisal Scheme in 2005 in the place of
Reimbursement of Expenses Scheme. Development officers Union NFIFWI
(National Federation of Insurance Field Workers of India) has strongly opposed
the scheme from the each and every corner of India. They had started Pen-down
strike, Non co-operation strike, they fight in protest of new scheme for more than
six months but at last they had to accept it.
4.1.4

Employee Benefit

The employee benefits are

28

Medi-claim Scheme is available to all employees. Arrangement were

made with the New India Assurance Co. Premium is partly collected
from the employees and LIC of India also contribute to the rate of 1:2.
In addition, cash medical benefit is also provided every year in the
range between Rs. 1800 to Rs. 2500 at Officers Cadre, between Rs.
870 to Rs. 1070 at clerical level.

Recreation club are also provided, with yearly grants to promote sports
and games. Nominal fee is usually collected from the club members.

With regards to Long Distance Travelling LIC of India provides

travelling allowances (LTC) up to 2000 km at after every two years.
From July 2006 LIC of India is going to increase this amount

Contribution to Provident Fund and Gratuity is being in accordance

with the act under force.

Voluntary Retirement Scheme has not been announced.

Staff Quarters are provided to the employees. Those who reside in the
quarters are not permitted to claim HRA. Housing Loans are also
provided to the employees at the rate of 5.25 %. The loan amount is to
be collected through monthly instalment from the salary up to
retirement.

LIC of India has given an option of pension to the employees.

Various Advances and Loans also provided to the employees.

Guest house facility also provided

Employee benefits are a significant to keep employee satisfied. By this way

employer can retain employees with the organisation for the long time.
4.1.5

Incentives
Productivity linked lump sum (PLLI) are payable to all classes of

employees depending upon the growth of the new business. The scheme has
been implemented on 1st August 1997. Incentives are also payable to the
development officers under the Growth Oriented Performance Appraisal Scheme.

29

After every 4 years LIC of India accept charter demand and settle it with
the help of consultation with various trade unions. Each and every charter
demand settlement turns in to attractive benefit to the employees.
4.1.6

LIC of Indias Personnel Policy

Objective
We are a premier service institution in the Country. Ours should be a place for
model employment, giving efficient and courteous service to the customers,
promoting participation and consultative culture of working towards the fulfilment
of Corporate objectives and with pride, giving our very best while performing our
individual tasks and duties.
We should value our employees, care for them and help them grow.
We should create conditions for them to perform well and to acquire more and
more industry-based knowledge and skills.
We should prepare them assiduously to assume positions of responsibility in the
Corporation.
Defined Goals
To facilitate in giving efficient service to its customers, LIC of india have recently
reorganised the Corporation. The goals of its Personnel Policy, in the changing
set up are identified as follows:
1.

To ensure that adequate number of persons with sound insurance

background and experience, both as generalists and specialists, are
available at different operative, supervisory and managerial levels; the
adequacy being viewed in the light of the needs of reorganization, the
enhanced standards of service to the customers and the fast growth
envisaged.

2.

To evolve the personnel system so as employees get equitable

opportunity to move up in the organisation on the basis of their
performance and ability.

30

3.

That the employees repose confidence in the personnel practices followed

by the Corporation. The policies should not only be fair and just but are
also perceived as fair and just.

4.

To ensure that responsibility for results is provided right from the lower
level so that employees can develop a sense of independence and selfconfidence.

5.

That jobs get enlarged and enriched and are performed in a manner that
nurtures team work, providing opportunity for learning new and varied
skills thus making the work more satisfying and meaningful.

6.

That those employees who show special aptitude for different skills, are
carefully provided appropriate training and experience.
In the personnel policy LIC of India has emphasized to nurturing team

work , to develop sense of independence and self confidence, job enlargement,

job enrichment, journey toward learning organisation.
Strategies
LIC of India has formulated the Strategies to achieve above stated objectives and
defined goals:
1. Initial years in Branches:
By-and-large all employees should acquire experience of working in
branches during the initial years of service. Preferably 2 years each in 3
or more sections. There, they should directly learn
I.

To interact with the customers

II.

The essential aspects of operational work

III. A sense of independence and confidence for doing
differentiated

functions and

IV. The skills required to bring about integrated activity &

superordinate

goals of the Branch.

31

It is assumed that no amount of theoretical inputs in classroom can bring

about the learning that comes from actual work experience. For existing
employees, plan may be drawn to give rounded experience.
2.

Develop specialization in later years in DO/ZO/CO

Greater degree of experience based expertise needs to be
evolved and developed in functional areas.

This specialization should

develop as employee move progressively in Divisional, Zonal and Central

Offices and assignments given to them depending upon their learning,
aptitudes and individual choices.
3.

Careful matching of skills and positions

Important skills in terms of broad classification needed to perform jobs at
different levels within the Corporation have been identified as follows:
I.

DM and above
Having an Administrative skill to do- interpretation and
integration of data, generalization, diagnosis, prediction, etc. at
the Top Management Level.

II. AAO to ADM

Human relations, skills, having to do with understanding
behaviour, effective interpersonal relations and reducing conflict
among individuals and groups etc., at the Middle Management
Level.

III.

Assistants to HGA etc.

32

Technical skills, having to do with how well the job can be

done, improving performance and helping others to learn the job
better etc., at Junior Levels.
The number of people to be taken each year should be based
on projections made for requirements. The mixed up skills to be
recruited may consist of basic qualification in subjects relevant
to LIC, such as accounting, actuarial sociology, law, finance etc.
4.

Process Consultations
As individuals of superior abilities are recruited at all
hierarchical levels in LIC of India, the responsibility for results
increasingly is to be assigned to lower levels. There is need to
develop a sense of independence and self-confidence at all
levels. These characteristics are likely to develop if:
a)

Employees are consulted more and more in their

career-planning placement, transfer and in other
matters that influence their personal life.
b)

Personnel practices in respect to selection,

appraisal, transfer and promotion are seen as fair and

just by those affected by them and special efforts by
LIC Management are made to gain such acceptance
from employees and
c)

Before drawing up the action plan for implementing

the policy discussions take place at all levels,
including the Unions and the participants realise the
special responsibility that evolves on them for the
successful implementation of the entire programme.

5.

Eliminating Class Distinction

33

It is desirable to create only one group of supervisory category

by amalgamating the existing categories of HGAs , Section
Heads and Superintendents.
Instead of Class I, II, III and IV, it would be more advisable to
assign letters of the alphabet right from lowest to the highest
group i.e., a for Class IV, b for Class III, c for Class II, d for
AAOs, e for AOs, f for ADMs, g for DMs, h for Sr.DMs etc. The
difference in classification is to be based on the nature of work
and the responsibilities assigned.
6.

Recognizing Good Performances

A system of recognizing exceptional merit and performance is
necessary at all employee levels. The factor to determine this
should be how challenging a work plan had been drawn and
achieved and how consistent had been the pattern of high
performance. The recommendations for merit promotion should
be

submitted

through

Management

Committee

and

percentage of promotion on that basis should be decided in

advance.
7.

Work To Be Redesigned
Through the reorganization process, the work has been
decentralized to the branches. It is necessary to redesign the
work in all our offices specially the Branch Offices. To start with,
this work of redesign may be started in some Branches in each
Zone on experimental basis. Later on it can be implemented in
all Branches.

8.

Reorganization of Personnel department in CO/ZO/DO

34

For discharge of new roles as emerging from the

reorganization the Personnel Departments in the CO/ZO and
DO shall have to be reorganized and restructured.

The

Administrative Powers centralized in CO, ZO may have to be

passed on down the line. The DO departments may have to be
responsible for Management Development, Career Planning
and Training of the staff working in the Divisional Offices and its
Branches. ZOs may have to be given increased powers for
promotion up to AO and for transfer and placement even up to
ADMs and or DMs, the Personnel Managers in these
departments should be carefully selected and may be sent for
special

training

programmes

arranged

by

prominent

Management Institutes in the country.

The objectives should be to develop expertise in the field of
Personnel Management from within the organisation over a
period of time. In this process the personal responsibility of line
Managers should get embodied in their overall roles to an extent
that in the Role Assumptions these Managers too play their part
in human resources development. In particular, counselling and
career planning will be increasingly taken up at all managerial
levels as a specific job obligation.

4.1.7

LIC of Indias Future HR Planning

35

LIC of India has planned a future HR planningto be more strong in competitive

scenario
.
Personnel Administration Section

Complete integration of Data of employees through networking : The data

of

employees of all classes will be kept at Central Office and all other

offices will work on this data for taking any action. The result will be that
decision making accurate as it will be based on accurate data.

Special Emphasis on Competency Development Establishment of formal

channels to identify competencies required by the organization and means
to develop them among the employees.

Career Path & Succession Planning Competency mapping mechanism will

be in place whereby means to define competencies required for a position
and individual competencies will be matched for perfect placement.

Reward of extraordinary talent Methods and procedures will be evolved for

out of turn promotion/rewards to retain extraordinary talent in the
organization.

Exit Policy for non - performing staff will be in place.

Restructuring of organization with a view to bring about a balance in

number of employees engaged in operations and persons required to
supervise them.

Employees Relations

strengthening the Grievance Redressal Machinery for effective redressal

of staff grievances thereby reducing the industrial dispute

Periodical review of the benefits extended to the employees viz.

Mediclaim, LTC, TE etc.

Improvement in health care scheme to ensure the quality of life of the

employees

36

Increasing the participation of work force in Management decision making

process

To restore partial autonomy by modification in section 48 and 49 of LIC Act

Man Power Planning & Recruitment

Review of Cadre strength formula

Recruitment of specialized cadre as per need to be made regular :

a. AAO

150 every year

b. Actuarial Apprentices 50 every year

c. AAO (MBA)

50 every year

d. AAO (CA)

50 every year

e. AAO (MCA)

50 every year

Periodical review of Compassionate Appointment

Succession Planning

Sports Department Planning

Recruitment of 20 outstanding sportspersons of national and international

repute every year in the deficient areas of the six sports disciplines in the
fold of LIC Sports.

Increased participation of LIC team in national events from the existing

10 to 25 events so as to make Corporation a dominant force in the field of
sports amongst Public Sector Units.

Discipline Department

Strict adherence to benchmarks set out for the various stages of

disciplinary action

Extension of the existing Manpower Inventory database on power builder

front end = based on Oracle 8i data base management to the Zones and
Divisions for the purpose of unified database and generating MIS at the
Central Office even in respect of cases pertaining to Zones and Divisions.

37

This will enable us to identify the time lag and take timely remedial action
to reduce the time lag.

Regular training on matters relating to disciplinary proceedings especially

conduct of enquiries.
With the help of strong and efficient HR practices LIC of India is going to
build a strong foothold in emerging competitive market scenario.

Regular updating of the compendium on case laws on service matters to

be of help to the Personnel Department as a reference for taking decision
on various issues.

38

4.2

IT Initiative

After the implementation of IRDA in July 1999, the privilege of being the
monopolistic company ceased and now there are a number of life insurance
companies working in life insurance sector. The LIC of India was set up with the
objective of spreading life insurance much more widely in the rural areas with the
further objective of safeguarding the interest of its crores of policy holders and for
the welfare of nation too. Today it has been providing lot for the development of
transport, pubic sector, electricity department etc. through channellisation of its
life funds
The LIC of India has its central office situated at Mumbai at the apex. There are
seven zones in the country under the supervision of the central office and 101
divisional offices controlling 2048 fully computerized branches. Today the LIC of
India is linked to each and every branch through information technology, which
has lessened its distances from miles to few seconds and the communication
gap has lessened. More over it has been able to win the confidence and faith of
crores of its policy holders due to the implementation of information technology.
Today each and every branch fully computerized. Now, the policy holder is not
bound to cover long distances to get his premium deposit or for payments. He is
not bound to go to the institution to fill long forms , but just click the buttons and
to get much more information and to do the correspondence while sitting at home
without any expense. LIC of India is the first to introduce such a latest and
advanced form of information technology to both its employees as well as to the
policy holders. Recently the implementation of LAN, WAN, MAN networking has
won the hearts of the policy holders. For better and prompt customer servicing
LIC of India has a multi channel approach of the optimum benefits of latest
technological advantages.
LIC has been one of the pioneering organizations in India which has Introduced
Integrated and Leveraged Information Technology in its Business Processes
and Customer Servicing.

39

Data pertaining to almost 140 million policies is being held on computers in LIC.
LIC has adopted the relevant and appropriate technology over the years.
4.2.1

The History of Data processing in LIC

1964 saw the introduction of computers in LIC. The IBM Computers 1401
& 1410 were set up in Bombay and the policies of Bombay were serviced
from the EDP Center set up at Central Office Mumbai

However LIC of India started Data Processing in Unit record machines

right from 1950 onwards.

Unit Record Machines were introduced in LIC of India in the late 1950s

Unit Record Machines introduced in late 1950s were phased out in 1980s

Microprocessors based computers (MPB) were introduced in 1980s in the

Branch and Divisional Offices for Back Office Computerization and the
MPB systems replaced the Unit Record Systems.

Standardization of Hardware and Software commenced in 1990s.

Front End Application Programme (FEAP) was introduced in the mid 90s
and Standard Computer Packages were developed and implemented for
Ordinary and Salary Savings Scheme (SSS) Policies.

Networking was the major initiative in the late 90s Today about 2048
branches are networked.

Website www.licindia.com introduced in 1996

Metro Area Network in 7 metros introduced in the year 1998.

Local Area Network established in 1900-2000

Wide Area Network introduced in 2001 to cover 100 divisional offices

connecting all the branches.

Online premium payments in 2003

Interactive Voice Response System

Short Messaging Solution broadcast module

Infocentres in 2002

40

Kiosks

Infomedia Software for agents

Today LIC has initiated major initiatives such as Data Warehousing & Data
mining Document Imaging Setting up portals etc with a aim to transform
the Organization into a IT enabled Business organization

4.2.2

IT advances.

1. Front End Application Programme (1995)

In the year 1995 Front End Application Programme introduced. All the 2048
branches are equipped with in-house developed programs covering all policy
servicing aspect to give prompt computerized services from new policy
introduction, acceptance of renewal premiums, revivals, loans, surrender
value, final claim settlement etc. the green channel is for on the spot
completion and the single window provides for faster and better decision
making and offering instant and the latest information at all the levels.

2. MAN (Metro Area Network) in 7 metros introduced in the year 1998

. LIC of Indias WAN (Wide Area Network) covers 100 division offices
connecting all the branches through a MAN. This helps the customer to pay
his insurance premium any of the branches connected to the network. The
customer can get a status report on his policies in these branches as well as
the quotation for revival of their lapsed policies and loans & surrender value.
In year 2002 network with Linux, Intranet also introduced for organizational
purpose.

41

3. Website : www.licindia.com (1996)

www.licindia.com website introduced in 1996. from the website policy
holder gets his policy status online, information about Insurance product
and services, addresses of the BO/DO/ZO/CO and also finds links to the
subsidiaries of LIC of India.
4. On Line Premium Payments
LIC of India has tied up with some banks and service providers to offer an
on line premium collection facility to its customers in selected cities.
Electronic Clearance System (ECS) was introduced in 2005, is currently
available not only in metros but also extended to other parts of the
important centres. Policy holders wishing to use this system, would have
to fill up a mandate, available at LIC of Indias branches and get it certified
by the bank. The certified mandate are to be submitted to the concerned
branch office. On the day indicated by the policy holder, the premium
amount will directly be debited to the bank account of the policy holder, the
premium amount will directly be debited to the bank accout of the policy
holder and designated branch office will issue the receipt.
Premium Collection through ATM centers : ATMs of Corporation Bank and
UTI Bank has been launched.
5. Interacting Voice Response System (IVRS)
IVRS introduced in 59 urban centres. This is a menu driven services.
Customers can get selected information regarding their policies by calling
the prescribed telephone numbers. These numbers are advertised
frequently and are also available on LIC of Indias website.

42

6. Short Messaging Solution (SMS) Broadcast Module

The LIC of India has launched SMS Broadcast Module to transmit
messages to the public as well as field force.
7. Info-centres
LIC of India has commissioned its first policy service info-centre at
Mumbai in march 2002. Such centres are being installed in Delhi, Kolkata,
Hydrabad, Chennai, Banglore, Ahmedabad and Pune, equipped with
trained person to give any information regarding life insurance products
and suitable plans for every customers needs.
8. Kiosks
LIC of India has installed 150 selected Kiosks at 150 locations to give
policy status reports and details about insurance policies and its servicing
aspect.
9. Info-Media Software
LIC of India has also developed a soft ware for the agents. It also provides
an Info-Media software to agents with their business particular for those
who are having personal computer for the cost of RS. 100/- only but the
main draw back is that LIC of India has not taken initiative to train agents
for using this Info-Media software. Due to lake of knowledge many agents
bought the CD and are unaware of how to use it.

10. Data Ware Housing & Data Mining

LIC of India is planning to go for data ware housing and data mining. With
this tool the executives sitting in the chamber shall be able to drill down
any information in detail with the click of mouse. This system will provide

43

easy access to decision model and data which shall be helpful in decision
making task.
11. Middleware (Web application)
An application server enforces the web application to the organized three
tier architecture. Front End, Middle Ware and Back End. Soft Ware Middle
Ware sit between diverse applications and serve data on demand.
Applications can process data and return meaningful information in real
time and keep the data in sync at different locations. There will be a single
version of truth at all locations where data resides.
12. Portals
LIC of India is going to starts portals on the website for employees as well
as agents.

4.2.3

The IT policy.
The Objectives of the IT policy In LIC of India
The IT Policy shall act as the beacon light for Guiding the
Organisation all its Business and Customer Service Operations
and enable the Organisation to accomplish its Vision & Mission
Life Insurance Corporation of India is committed to

Adopt new initiatives & strategies required to promote Business

Growth and enhance Customer Services in the emerging
Competitive Scenario.

Use IT as a tool for achieving competitive advantage.

Adopt Strategic Management of IT in the core areas of selection,

deployment, administration, operation, and maintenance of IT
assets to achieve the organizational goals.

44

Use IT not merely to automate processes but deploy IT as a

strategic tool to simplify procedures and revamp processes.

Use Electronic governance to derive the following benefits:

Any-where, any-time services to customers

One-stop shop for all transactions in the Customer interface

Better accountability, responsiveness and transparency of all

systems.

Highly efficient Customer Services Management systems

The IT Policy Document shall act as a guiding principle of the Organisation

to achieve the above goals The nature and pace of development of Information
Technology dictates that such a policy document has to be dynamic and
evolutionary, to take into its fold emerging technologies and trends.

It is,

therefore, proposed to update the document after due consultation process as

and when required.
I.

The Information Technology (IT) Department of Life Insurance

Corporation of India shall develop Software Technology that will
cater to the Business Requirements of the Organisation in all
important spheres of Business activities

II.

The Software Support of the IT Department of LIC of India shall

be available for its Branch Offices; Divisional offices; Zonal
offices and Corporate office at Mumbai and other Offices
operating at foreign locations as decided by the organisation.

III.

The Software Support shall encompass all Business activities of

the organisation including Finance; Investment

; Product

Development Actuarial & Underwriting ; Customer Management;

Marketing; Customer Services Human Resource Development
Office Services Estate Management etc
IV.

IT Department shall be involved in

45

Creation of and Maintenance of Software for the Business

application of the Organization;

Creation of and Maintenance of Web-enabled technologies

for the
Business applications & needs of the organization

VI.

The Information Technology (IT) Department of Life Insurance

Corporation of India shall ensure that the right of citizens to
have access to information through electronic media will be
progressively ensured. Access will be given to the various Acts,
Rules, Application Forms, Services, existing processes and
procedures, etc. by the concerned departments. Portals and
Web-sites will be progressively set up for Departments,
VII.

In order to provide high speed connectivity for its emerging

technologies (such as Data Warehousing Portals etc) the

organisation will design an extensive network with appropriate
bandwidth. The latest communication strategies using fiber
optics will be opted for; to connect the Branches Zones
Divisions and the Corporate Office.
VIII.

Offices of the Corporation will be provided with VOIP; e-mail;

and Video (wherever possible), for Voice; Image & Data
communication using State-of-the-art Technology

IX

The Information Technology (IT) Department of Life Insurance

Corporation of India shall, in collaboration with the HRD
Department

of

transformation

Central
of

the

office

endeavor

organisation

from

to
an

bring

about

IT

aware

Organization to an IT enabled organisation by adopting an

appropriate training programs for all its employee.
X.

Projects will be taken up for computerized billing and electronic

payment of Premiums. Smart Cards, stored value cards, Credit /

46

Debit Cards will be integrated into the Electronic System for

payment of bills to utilities. A business model will be evolved for
joint partnership of government and the private sector to
electronically deliver services on a sustained basis so as to
ensure that the organisation does not incur much expenditure
and transactions are handled on a transaction fee basis.
XI

The Information Technology (IT) Department of Life Insurance

Corporation of India shall formulate strategies for Hardware
acquisition, Network designing and Software development.
Attention will be paid to models, network design and overall
systems Management.

XII.

E-Governance

should

eventually

provide

integrated

Customer services through a single window by Re-engineering of

Business processes. Service Delivery Points (SDP) will be set up
progressively at convenient locations for Customers to access
services. These can be established in collaboration with the
Public Sector organizations (Banks/Post Offices/Government
agencies) and also by Private Sector agencies and may include
the following in the long run
Information kiosks having intelligent public interface with touch
screen monitors,
Front office terminals in Government offices (e-seva centers of
the
XIII.

Governments).

Indian language based systems are crucial for impact of IT at

the grass

roots level. Life Insurance Corporation of India

shall actively endeavor to promote the use of software tools in

all the National Languages

47

4.2.4

Present IT Projects

.
The IT Policy covers the following PROJECTS for the present:
1. Customer Relation Management initiatives
CRM is a strategy that starts, maintains and optimizes relationships with
customers to develop Customer loyalty. CRM is often used to describe the
process of Managing Customer Data, Lead Generation and Customers Service

CRM is strategy, enabled by Technology.

Technology is the enabler of CRM strategy.

IT Department will provide technologies for CRM Analytics and CRM initiatives
for the Sales force
2. Business Intelligence (BI)
Business Intelligence (BI) refers to the functions of gathering, processing, and
analyzing large volumes of data from the internal system and external sources.
BI tools allow LIC of India to automate its functions of analysis, strategy, and
forecasting to make better business decisions.
BI solution can then draw 'intelligence' from the warehouse.
Broadly, enterprises need to derive intelligence for two main purposes.
1. For performing analyses to help make decisions. The analyses can help
identify sales trends, and provide alerts about important customers and
complaints.
2. To help predict future customer behavior and market demand.
BI helps to answer questions such as:
1)

Who are my best and worst customers (and therefore, where should I
concentrate my future sales efforts)

2)

What parameters affect my sales (Is there a brilliant sales person? Has
a campaign been successful?)

48

3)

What advantages does my business offer customers, as compared with

the competition?

4)

Where are we making/losing money (in terms of geography, product

line, campaigns, etc')

LIC of India generate Raw data from various sources and touch-points within
the organization, and also from external entities like field force. This raw data is
stored as 'information' in OLTP systems like databases. This information stored in
a central repository like a warehouse, is mined to extract Knowledge.
Data Warehousing project is expected to commence in Mid 2004 and the
BI tools can be used from 2005-06.
Users should be ready by that time to use the Data mining tools effectively.
3. Network & IT Communication
In 1997, LIC took the first step for networking its Branches through the
Metro Area Network.73 branches of Mumbai were connected in the first phase of
networking in Mumbai. Gradually, the Wide Area Network was commissioned and
in 2003 all the 100 Divisional Offices and 2048 Branches are part of the Wide
Area Network.
The network has been commissioned using Cisco routers and auxiliary
products, Motorola and RAD leased line modems. The architecture of the
network is divided into two parts as follows:
Wide Area Network: The following offices are linked to the Wide Area Network
using a mesh topology with 64 kbps link:

Central Office the CO WAN center.

7 Zonal Offices - the ZO WAN centers

89 Divisional Offices MAN centers (actually covering 100 Divisions.)

49

Metro Area Network: Branches in each Division are linked to the respective
Divisional
Office and to one other Branch in the same Division (redundant link).The
applications running on the network are remote query, where the data traffic flow
is sporadic in nature and for FTP to transfer files in batch mode. The latter
being carried out after close of cash hours every day. LIC of Indias legacy
systems work on UNIX platforms with COBOL. The structure of the data is in flat
file format.
New applications introduced are Video Conferencing, Corporate Messaging, and
on anvil are Data Warehousing and Online Data Store. Consequently, the uptime
and adequacy of the network has assumed criticality.
1. To enable continuous monitoring of the network, LIC of India has procured
a Network Management Software
4. Utility of Network Management Software (NMS) Application
In a scenario where networks are becoming increasingly critical for the
smooth running of day to day business, it is important for the IT team to keep it
available at all times and to provide high levels of performance to its end users.
Among other benefits, following are the key benefits that knowing bandwidth
utilization trends can provide:
1.

Cost Savings

2.

Network Intelligence.

3.

Maintaining High Service Levels

4.

Control Abuse

5.

Billing / Internal Budgeting

6.

Capacity Planning

7.

Accurate Costing For Budgeting Purposes

50

:
Reporting Features & Deliverables
1. Bandwidth Utilization
2. Traffic
3. Uptime
Modes of Alerting:
The system has a capability to directly generate alerts to at least a minimum of 5
named persons, but not limited to it, through a combination of all the following
modes:

Email

Mobile phone

Pager

Scheduling of Reports:
In todays fast changing (but slow growing) global economy, competitive

advantage is difficult for organizations to achieve and even more difficult to

sustain.
Networking and Communications plays an important role in providing the
organisation the e-business and Online advantage
Network Infrastructure already created will be appropriately managed to

Simplify service delivery,

Reduce duplication and

Improve the level and speed of service to the public.

Telecommunication linkages through optical fiber cable and VSAT systems will be
installed wherever required; to form a communication backbone.
5. IT Education and Human Resource Development

IT literacy will be gradually made an essential requirement for all

categories in employment.

Courses on IT enabled Services will be introduced at MDC/NIA.

A high level Information Technology Training Committee (ITTC) will be set

up to focus on Education & Training requirements of the organisation. The
51

HRD Department will draw the Training Programs keeping in view the
requirements of the organization.

Awards will be given by Training Institutes to the participants for achieving

excellence in IT related subjects

Employees will have access to a wide source of Data, Information Training

and Research material for education & learning through the Intranet sites
and Portals of the Organizations. Learning & Training Modules will be
deployed through electronic connectivity.

The MOU between IITM Chennai and LIC of India will be examined in the
light of requirement of IT and a comprehensive IT Training schedule drawn
for the IT Personnel of the organization in consultation with IITM Chennai.

6. Middleware
Organizations have disparate systems deployed for its various applications
In our Organization
-

FEAP runs on Cobol

P&GS Systems are Oracle based

Investments systems are in a Oracle & Proprietary Platform and so on

In today's Corporate Computing environment, many applications have to

share data.

Middleware is software that connects applications, allowing them to

exchange data.

From a business standpoint, connectivity among diverse applications and

platforms is

important.

FEAP applications need to communicate to other applications so that

organisation can make accurate promises to customers, and executives
can make educated decisions more quickly.

E-business in particular demands better integration by an order of

magnitude.

52

Middleware ties together all those apps and connects them to a Web front end,
hiding the complexity from the customer.
Putting middleware in the middle can mean each application needs only one
interfaceto the middlewareinstead of a separate interface to each application
it needs to talk to.
Middleware can capture data and hold on to it until it has been recorded
appropriately by all the applications or databases that needs the information. In
technical vernacular, this ability is referred to as "persistence."
7. Online Data store (ODS)
Data has to cater to both operational and informational usage. When data is to
be used for operational aspects of organization, the database and the
applications are to be designed for OLTP i.e. Online Transaction Processing
ODS facilitated by middleware seeks to create and maintain a Data Store at
Central level to make data available to the requesting applications for online
transaction processing.
ODS will have current data for transaction processing and will make available
this data to data warehouse for historical analysis
Unlike Data Warehouse which is designed for Decision Support System i.e. less
no. of users requiring large amount of data, ODS is designed for Transaction
Processing i.e. large no. of users requiring small amount of data
ODS has to serve data instantaneously over internet. ATM, etc.

TCS in association with LIC of India ODS Technical Team will design and
implement the project

1.

Data will be pooled from branches into a Central RDBMS

53

2.

Data will be in real time sync with branch databases

3.

Data will be served to requesting applications near instantaneously

4.

Customers can have real time access to their policy data. We can also offer
some more services as per business decisions. All this will happen in real
time.

5.

Portal For Agents:

The agents can log in, have access to their customer portfolio and
render quality service. Agents can have PDA where the following
services can be provided

6.

E-Office

Proposal Registration

Policy Information

Product Information

Insurance Advisor

SMS Push Services: Product Campaign

Premium Alerts

Other Information

ODS can help in providing mission critical, high performance data storage
and serving capabilities for our operations in E-Business

8. Knowledge Management: A Strategic Tool

IT Department plans to implement a program to build Knowledge Portals
and implement the Knowledge Management Project for the benefit of its
employees and field force.
Knowledge encompasses both tacit knowledge (in people's heads) and
explicit knowledge (codified and expressed as information in databases,
documents etc.).
A good Knowledge Management Programme should address the processes of
Knowledge Development and Transfer for both these basic forms.

54

Knowledge Management is the explicit and systematic management of

vital knowledge - and its associated processes of creation, organization,
diffusion, use and exploitation
Knowledge Management is the building of "intellectual assets" for the
Organization.
9. e-business
The most basic definition of e-business is simply this: using the internet
to connect with customers, partners, and suppliers.
E-business implies the transformation of existing business processes to
make them more efficient.
To engage in e-business, LIC of India needs to be able to unlock data in
their back-end computer systems, so they can share information and conduct
electronic transactions with customers, partners, and suppliers via the internet.
E-business is a philosophy that a business abides by in its planning and
daily operation. At the heart of that philosophy, is the placement of the customer
at the very center of the company. The focus is on achieving superior levels of
service, efficient business processes, and realizing the company mission and
goals.
E-business is about building lasting value in the company through a higher
level of relationships not only with customers, but also with vendors, resellers,
and other partners throughout the channels of business.

10. Data Ware Housing and Data Mining

"Data Mining is a new discipline lying at the interface of statistics, data base
technology, pattern recognition, and machine learning, and concerned with
secondary analysis of large data bases in order to find previously
unsuspected relationships, which are of interest of value to their owners."
The DM project will be implemented by IT Department in consultation and
collaboration with the Users to derive the benefits which DM/DW projects offer

55

11. Web Services and Portal

The Computer industry (Software in particular) has over the last decade; made
great strides in changing from Engineering-driven or Software driven Culture to
Customer-focused Culture.
When the internet first came out in the mid 1990s, Organizations had put up
Catalogs on the WEB. But these stand alone web catalogs were not Used
enough by the Customers which led to the Burst of the Bubble.The world has
today moved from the Web to the Portal A Web portal is a "Super Site on the
Internet that provides a comprehensive entry point for a huge array of resources
and services. Portals typically contain news, free e-mail services, search
engines, online shopping, chat rooms, discussion boards and links to other sites.
Corporate Portals are internal websites that provide proprietary information to
employees, suppliers, partners, clients and stockholders. When they serve only
the needs of employees, they're called intranets. When outside parties, like
customers or suppliers, are allowed access, they become extranets.
Corporate Portals let users locate and share knowledge and data, participate in a
business process and collaborate. They generally feature search engines for
internal materials, and they can be customized for different user groups.
Portals tend to generate profit through e-commerce.
A business that requires a lot of knowledge sharing between employees,
customers and partners, requires a Portal or extranet because a Portal is
definitely an efficient, user-friendly way to make e-commerce happen.

56

12. Document Imaging

Document Management Systems
In the Current year LIC has initiated the project Document Management
Systems
The main aim of the project is to move away from physical access of the
documents required for all servicing purposes in the regular course of
business in the Branches.
During this project the policy & loan dockets, agency dockets will be
scanned and the scanned images will be made available to the employees
working in the Branch, to be used instead of the physical dockets for their
regular servicing needs.

57

4.3

Alternative Distribution Channel

If we observe post nationalization experience of LIC of India, there is only use

of existing distribution channel. On nationalization of life insurance LIC of
India inherited a very large number of agents and a good number of field
workers then called inspectors, now designated Development Officers. The
agent is the only intermediary in the distribution channel of LIC of India. This
was a very traditional distribution channel of LIC of India. LIC of India is still
continue with this channel and more than 98% of the new business procure
from this traditional intermediary only.
The Agents Rules 1972 provide for grant of agencies to co-operative
societies, Panchayats and other societies registered under societys
registration act 1860. in 1972 instructions for grant of agencies to cooperative societies and panchayats were issued. How ever agencies were to
be treated as direct. Not much progress was made in granting agencies to
these institutions. In July 1998, new guide issues to all offices were issued for
grant of agencies to these institutions.
After the emergence of IRDA LIC of India has started to think over the
alternative distribution channel with keeping cost effectiveness in the mind.
The document vision 2010 is emphasizing on the alternative distribution
channel and also emphasizes to remove a cadre of Development Officer to
be cost effective.
Now LIC of India is no more in monopolistic situation private players with their
foreign partners came with distribution channel having a new dimension.
Their thrust is not on the traditional channel for the distribution of insurance
product. LIC of India has to keep pace with the changing scenario.

58

4.3.1

Major Tools for Distribution Channel

Agents
Definition
An agent is an individual who sells and services insurance contracts for the
insurer. He can only deal with one insurance company. Under IRDA
regulations, an agent has to pass an examination to be certified fit for acting
as an insurance agent. The insurance company can thus only appoint as
agents those who have been duly certified as such. The agent sells the
various products offered by his company and earns commission or a fee for
the sale of each policy. Agent is a tradition tool of the distribution channel. LIC
of India has a wide network of

Procure business through the corporate giants or bank or reputed institutions

became

an innovative tool as distribution channel in post liberalization

scenario. Instead of planning to the individual, LIC of India planning agency in

the corporate houses, banks and reputed commercial institutions. This is a
new concept in India but it is cost effective.

59

 Corporate Agents
Definition
A corporate agent is an organization that has been licensed for the purpose
of

retail insurance distribution. A corporate to be entitled as an insurance

agent may be chosen among the following:

A firm, which is registered with the register of firm
A company formed under the Companies Act, 1956
A banking company as defined in the Act
A regional rural bank established under the Regional Banks Act, 1976
A cooperative society, including a cooperative bank, registered under
the Cooperative Societies Act,1912
A Panchayat or local authority
A Non-Governmental Organization (NGO) or a Micro Lending Finance
Organization (MFI) covered under the Cooperative Societies Act,
1912, or a Non Banking Financial Company (NBFC) registered with
the Reserve Bank of India
Or any other institution or organization which on an application to the
Authority has been specifically approved by the Authority
There are two types of corporate agents:
The corporate agent, means an entity entitled to act as an insurance
agent of either life insurer or general insurer
The composite corporate agent, means an entity entitled to act as an
insurance agent for both a life and general insurer

Licensing Process
The application for licensing a corporate agency should be routed through an
insurance company. The requirements to become a corporate agent are:

60

Go through a practical training of 100 hours or 50 hours provided in

classroom or online by IRDA

The organization will nominate a Chief Insurance Executive for the

purpose of overseeing the insurance business

The fees payable to the Authority for issue or renewal of license to

act as a corporate agent shall be Rs. 250/-

Remuneration
Each corporate agent shall be paid a commission as per provisions of the
IRDA Act, which limits the total commission payout to maximum 60 % of the
first five-year premium. The remuneration depends on the product, term and
the mode of premium calculation applied on the products, subjected to the
above limit.

61

 Broker
Definition
The broker is an intermediary between an insurance company and the potential
clients and policyholders.
The broker must also receive a license in order to be entitled to sell insurance
products. A broker can sell insurance products of more than one insurance
company to its customers. The following entities can apply for insurance broker
license:
An individual
A firm, which is registered with the register of firm
A company formed under the Companies Act, 1956
A cooperative society registered under the Cooperative Societies Act, 1912
Any other person recognized by the Authority to act as an insurance broker
There are two types of brokers:
The direct broker, meaning an entity that carries his insurance functions
either in the field of life insurance or general insurance
The composite broker, meaning an entity that carries out his insurance
functions both in the fields of life insurance and general insurance
Licensing Process
The application for receiving a license as an insurance broker shall be made in
the proper for to IRDA. The requirements to become a corporate agent are:
Go through a theoretical and practical training of at least 100 hours
provided by an institution recognized by IRDA
The principal officer must possess the minimum qualification of graduation,
or its equivalent from any institution /university recognized

by any state

government or the central government

62

 The principal officer must, for a period of no less than seven years prior to
the application made to the Authority, have been a principal underwriter or
have held a manager position in any one of the nationalized insurance
companies in India
Bring a minimum amount of capital of:
o Rs 5.000.000 for a direct broker
o

Rs 25.000.000 for a composite broker

Remuneration
Each broker negotiates, within the limits of IRDA regulations, the remuneration
he may receive from each insurance company he is dealing with.
The most important difference between broker and agent is that the brokers act
on behalf of the insured both at the time of placing the risk and also during the
settlement of the claim. But an agent act on behalf of insurer. The brokers work
with a number of insurance companies and are much well positioned to obtain a
good deal for the insured on favorable terms.

Banc Assurance

63

Banc Assurance is a term given to the distribution of insurance products through

branches and other distribution channel of banks. This concept was generated in
the France. In France 70% of the new business premium comes through banks,
69% in Portugal and 63% in Spain. In India, the concept has taken foothold with
PSUs and Private Insurers entering In to tie-ups with banks. There are more
than 66000 branches of commercial banks in India and 50% of them are in the
rural area.
Bank insurance in India is very recent origin the concept was rather unknown
before the passage of IRDA Act 1999. In the year 2000 RBI formulated guideline
for the entry of banks into the insurance sector the number of banks entering into
the banc assurance alliance is increasing day by day. During the past one year
the number of alliances has grown rapidly and it is expected that more bank s s
will join. The main reason behind the banc assurance partnerships in India has
been the fact that the banks and insurers both tend to lose nothing. The insurer
gets the benefit of expansion of the existing market without any substantial costs
and banks also find it profitable as they are able to earn fee based income
without any substantial investment in infrastructure or manpower. Due to
introduction of information technology in banks a large number of employees
have become redundant. Banks are facing the problem of relocating these bank
staffs. Due to the strong presence of trade unions in India they do not have the
option to lay off the employees.
So marketing of insurance product and earning an additional income is a
blessing in disguise for the banks. By deploying the excess staff in marketing of
insurance product and harness their existing customer base. The banks are
eying the partnership as a win-win solution.

Model Banc Assurance in India

64

Referral Arrangement

Corporate Agent

Joint Venture

LIC of India has a strong efforts to explore this channel. It has not any Joint
venture with the bank but procures business through Referral Arrangement and
Corporate Agency.
4.3.2

Alternative Distribution Channel in LIC of India

LIC of India has introduced alternative distribution channel in the financial year
2001-2002, and has emerged strongly in the fourth year of operation. High
averages i.e. first premium per policy, sum assured per policy and first premium
per thousand sum assured recorded through alternative channels. This indicates
that the new channels are able to target new market segments and high net
worth individual s by leverage the large customer base and the reach of banks
and corporate agents. In a highly competitive market environment for the year
2004-05 alternative channels posted an impressive performance underwriting
140615 policies with sum assured of Rs. 1401.46 crores and first premium
income of Rs. 194.40 crores registering highest ever growth rates of 229.32%,
192.33%, and 364.05% in policies, sum assured and first premium income
respectively.
Banks have emerged as strong business partners amongst alternative
distribution channel in terms of the first premium mobilization. LIC of India has
tied up with

31 Banks having 10175 outlets

646 corporate agent operating through 1920 outlets

Established relationship with 100 Brokers across the country.

65

Some of the prominent banks are

-

Corporation Bank

UCO Bank

Central Bank of India

Allahabad Bank

Indian Overseas Bank

Oriental Bank of Commerce

Bank of Punjab

City Union Bank

Indus-Ind Bank etc.

LIC of India is confident of increasing its market shar through alternative

channels and also greater penetration of high end, unit linked and pension
markets.
NEW BUSINESS (LIFE) UNDERWRITTEN THROUGH VARIOUS
INTERMEDIARIES: 2004-05 (Per cent)
Insurer

Individual

Corporate Agents

Brokers

Referrals

Direct

Agents

Banks

Others

Business

Private Sector

59.30

15.42

7.75

1.23

6.25

10.05

LIC

98.79

0.87

0.30

0.04

0.00

0.00

TOTAL

88.65

4.61

2.21

0.35

1.60

2.58

(Source: IRDA Annual Report-2004-05)

66

 The Alternate Channel of Distribution Corporate Agent, Banks

and Brokers is expected to bring in an FPI of Rs.113 cr. in 2003-04
which is 1% of our Composite Target of FPI.
It is estimated that with steady growth in the share of Alternate
Channel to Total FPI, the channel is expected to reach 12% share
level by 2013-2014.
By 2013-2014, the FPI through Alternate Channel is estimated at
Rs.5626.73 cr. which is 12% of Total FPI budget of the Corporation.
The growth in Development Officer strength is assumed as 1% per
year.

67

10 YEARS PROJECTION OF NEW BUSINESS THROUGH ALTERNATE

CHANNEL
FPI PROJECTION FOR 10 YRS
GDP at
F.Y.

Market
Prices Rs.
In crs.

LICs Total

% of total

Premium Rs. Premium to

In crs.

GDP

(in

NB THROUGH ALTERNATE

crs.)
BASED
ON
SHARE
OF GDP
1

CHANNEL (in crs.)

% SHARE

BASED ON BASED ON BASED ON BASED ON BASED ON

TO LIC

AV.FPI OF TOTAL NB

15%

AV.FPI OF

SHARE OF

15%

GROWTH

AGENTS

GDP

GROWTH

AGENTS

2013-14

5758547

291217.17

5.06

46594.75

45783.58

46889.73

5591.37

5494.03

5626.77

12.00

2012-13

5331988

255249.17

4.79

40839.87

39811.81

40695.96

4492.39

4379.30

4476.56

11.00

2011-12

4937026

223011.85

4.52

35681.90

34618.96

35324.81

3568.19

3461.90

3532.48

10.00

2010-11

4571320

194149.89

4.25

31063.98

30103.44

30666.33

2795.76

2709.31

2759.97

9.00

2009-10

4232704

168340.12

3.98

26934.42

26176.91

26625.42

2154.75

2094.15

2130.03

8.00

2008-09

3919170

145288.72

3.71

23246.20

22762.53

23119.70

1627.23

1593.38

1618.38

7.00

2007-08

3628861

124728.67

3.44

19956.59

19793.50

20077.90

1197.40

1187.61

1204.67

6.00

2006-07

3360057

106417.35

3.17

17026.78

17211.74

17438.27

851.34

860.59

871.91

5.00

2005-06

3111164

90134.44

2.90

14421.51

14966.73

15147.36

576.86

598.67

605.89

4.00

2004-05

2880707

75679.91

2.63

12108.79

13014.55

13158.83

363.26

390.44

394.76

3.00

2003-04

2667321

62872.22

2.36

11317.00

11317.00

11317.00

113.17

113.17

113.17

1.00

2002-03

2469742

54602.37

2.21

9688.87

9688.87

9688.87

48.03

48.03

48.03

0.50

Source: IRDA Annual Report 2004-05

BASED ON GDP GROWING @ 8% EVERY YEAR

68

The Single Premium is estimated to grow at 10% p.a. Based on 2003-2004

budget Rs.700 cr. Single Premium, it is projected that Single Premium would
stand at Rs.1815.62 cr. in 2013-2014. The Individual Pension Plan FPI growth is
assumed at 20% per year. Based on the Budget of Rs.1500 cr. for 2003-04, the
projection of IPP FPI stands at Rs.9287.60 cr. in 20013-2014.

4.3.3

Resource Planning for Marketing Operation

Corporate Agents

Licensed Corporate Agents as

on 31.03.2005 (since inception)

Net addition of Corporate Agents every year

Total No. of Corporate Agents as

646

250

on 31.03.2014

3,012

Brokers

All licensed brokers to be approach and tied up.

Very few banks in India presence are now available for tying up.

Banks
However, efforts are to be made to tie up with Gamin Banks /
Regional Rural Banks sponsored by Nationalized Banks licensed
by us.

Strategic Bank branches to be identified for procuration of

insurance business and Branch Managers of Bank to be involved in
the process.

In next 5 years, 50% of the licensed bank branches should have

Specified Persons (SPs) exclusively for insurance work and in next
10 years all the branches should have exclusive SPs.

69

NAME OF BANK
Corporation Bank
UCO Bank
Bank of Punjab
Indian Overseas Bank
Central Bank of India
Oriental Bank of Commerce

NO. OF

NO. OF

SPs

BRANCHES

199

659

27

1507

68

36
107
8

1432
3117
475

70

4.4

Public relation and corporate communication

The business environment is changing rapidly. The expectations of the

stakeholders from the organization are also on the rise. In the wake of a dynamic
market scenario, the role of strategic corporate communication has never been
more important.
Changing market conditions demand innovative and powerful ways to
communicate to your stakeholders. Being a good company is not good enough.
Your stakeholders need to look at you as a great company. And only your
communication strategies will shape the attitudes and beliefs of your internal and
external audience.
External communication / media relations
Emergence of PR and Corporate Communication; Current global trends
Building image internally and externally
External Communication, Media Relations
Group discussion on case studies and presentation by participants
Internal communication
Importance and relevance of Internal Communication
Employer branding
Role of Corporate Communicators and HR professionals
Image Audit, study of perception
Internal Communication strategies
Case studies, group discussion and presentation by participants
Crisis communication
Management of crisis Internal and external
Reputation risk management
Crisis communication and post crisis handling
Case studies, discussions and presentations

71

Internet communication
Internet as a communication tool
Using groups, blogs in corporate communication
Case studies, discussions, presentation.
In consonance with the changes taking place in the insurance market, the LIC of
India has undergone a transformation. Simultaneously revamping its corporate
image and the public relation policy and publicity department has been
renamed as PR and Corporate Communication resonating the corporate
nomenclature styles. The LIC of India has emerged with a younger and sleeker
image, boosting the public confidence in its ability to retain its premier position.
Its advertisement campaigns assisted to augment sales and were in sync with
the marketing strategies and enhanced its brand image. The relationship with the
press was warm and LIC has received wide coverage. It reached out to more
than 20 crore people through its advertise campaign through various media like
Radio, TV, Internet, Press etc.
LIC of India received accolades from diverse entities during the year the first
being its recognition as the Most Trusted Service Brand of India by The
Economics Times and AC Nielsen ORG Marg for the second consecutive year.
It is also a Super Brand of India (2004-05) Dun & Bradstreet has certified LIC of
India as Number One in Net Worth and Net Profit among the Top 500 Indian
companies for the year 2004. LIC of India has receive a series of Golden
peacock Awards in the areas of Corporate Governance, Product Innovation and
also Global Award for corporate social responsibility. LIC of India has also been
given the Business world Most Respected Company Award 2004 and has been
adjudged as the Best insurer in India by Out Look Money. Yogkshema the
house journal of LIC of India won the ABCI Award for being the Best House
Journal under the bilingual category.

72

Looking at the recent changes, LIC of India is trying to change its traditional
image of public relation and corporate communication. With keeping this in mind
LIC of India has sponsored ZEE Cine Awards.
Since the essence of effectiveness here is the speed and appropriateness of
change to keep up with current trends. Also, publicity must run in conjunction
with the marketing effort, hence a concerted plan would be required. However,
broadly, the following strategies are proposed.
1. Marketing Intelligence:
Set up a machinery to pre-empt the strategies of competitors through
system of market intelligence.
2. Formal Communication:
To ensure that there is both up word and down word communication at all
levels in the Corporation through informal and formal meetings, E-mail,
Tele conferencing and other modern methods.
3. Liaison with prominent media persons :
To establish liaison with media persons, decisions makers to such an
extent that positive coverage far outweighs the negative and criticism can
be pre-empted and corrective measures can be taken well in advance.
4. Visibility through interview :
Heighten visibility of our organizations to more and more interviews of top
management and interaction with media persons.
5. Specialised PR agencies :
For image make over including education of employees and agents.
6. Direct communications with customers specially high net worth for brand
loyalty.
7. Identify authorized persons at every point of contact, drawing uniform
information from centralized data bank

73

Publicity
1. Educational / awareness campaign: Address concerns and apprehensions
of the public through specific advertising.
2. Focussed advertising : Make advertising more and more need based, data
based and target oriented.
3. Appraisal of Publicity efforts : Assess our advertising efficacy and
concerns of the insuring public regarding insurance by proper feedback
through surveys conducted by reputed firms.
4. Rural Thrust.

In consonance with the changes taking place in the insurance market, the
corporation has undergone a transformation, simultaneously revamping its
corporate image and PR and publicity department has been renamed as PR &
Corporate Communication , Resonating to the corporate nomenclature styles.
The corporation has emerged with a younger and sleeker image, boosting the
public confidence and its ability to retain its premier position. LIC of Indias
advertisement campaign assisted to augment sales and were in sync with the
marketing strategies and enhanced its brand image. The relationship with press
is warm and LIC of India received wide coverage. LIC of India reaches out to
more than 20 Cr. People through its advertisement campaign through various
media like radio, Tv, Internet, Press etc.. so far as media planning concerned LIC
of India is very choosy and the creativity in the advertisement at highest peak.

74

4.5

Customer Relationship Management

The Indian Insurance sector in todays scenario has transformed into a buyers
market, where the customer has the choice to select from a variety of
products, services and

service providers. More and more customers are

now identifying newer dimension attached to life insurance to match their lifecycle needs. Given uncertainty about lifes duration and about increasing ion
and retention CRM can be defined as it is a comprehensive strategy and
process of acquiring, retaining and patterning with selective customers to
create superior value for the company and the customer.
4.5.1 Factors contributed to the rapid development and Evolution of CRM
in LIC of India

Growing de-intermediation process in many industries due to advent of

sophisticated computer and telecommunication technologies that allow
producers to directly interact with end customers.

Databases and direct marketing tools have given the means to

Individualize their marketing efforts. As a result, insurer do not

Need

those functions formerly performed by the middlemen. Even Consumers

are willing to undertake some of the responsibilities of Direct ordering,
personal merchandising and the product use related Services with little
help from producers.

The de-intermediation process and consequent prevalence of CRM is also

due to growth of service economy. Since services are typically produced
and delivered at the same institutions, it minimizes the role of
middlemen .A greater emotional bond between service provider and
service user also develops the need for maintaining and enhancing the
relationship.
75

Another force driving the adoption of CRM has been the Total Quality
movement. When company embraced Total Quality Management (TQM)
philosophy to improve quality and reduce cost, it became necessary o
involve suppliers and customers in implementing the program at all levels
of value chain. This needed a close working relationship with customers,
suppliers and other members of marketing infrastructure.

With the advent of digital technology and complex products, system selling
approach became common. Customers liked the idea of system
integration and sellers are able to sell the augmented products and
services to customers .The popularity of system integration began to
extend to customer packaged goods ,as well as services .At the same
time companies started to insist upon new purchasing approaches such
as national contract and master purchasing agreement, forcing major
vendors to develop key account management programs .these measures
created intimacy and cooperation in the buyer-seller relationships. Instead
of purchasing product or services customers were interested in buying the
relationship with a vendor.

Current era of hyper competition, marketers are forced to be more

concerned wit customer retention and loyalty. As retaining customers is
less expensive and perhaps a more sustainable competitive advantage
than acquiring new ones.

In the era of dynamic environment customer expectations, cooperative

and collaborative relationship with customer seem to be most prudent way
to keep track with changing and appropriately influencing it.

76

4.5.2

A CRM process frame work

The broad framework of CRM process comprises of four sub-processes:

4. CRM
evolution or
enhancement
process

1. Customer
relationship
formation
process

3. Relational
performance
evaluation
process

2. Relationship
management
and governance
process

STEP 1: CRM FORMATION PROCESS

In, the formation process three important decision areas are:
a) CRM PURPOSE:

77

The purpose of CRM is to improve marketing productivity and enhance mutual

values for the parties involved in the relationship. CRM has the potential to
improve marketing productivity and create mutual values by increasing marketing
efficiencies and enhancing marketing effectiveness.
b) Defining the purpose would help in:

Clarify the nature of CRM programs and activities ought to be performed

by the partners.

Identifying suitable relationship partners who have the necessary

expectations and capabilities to fulfill mutual goals.

Evaluating CRM performance by comparing result achieved against

objectives. These objectives could be specified as financial goals,
marketing goals, and strategic goals operational goals.

c) SELECTING PARTIES FOR APPROPRIATE CRM PROGRAMS

Customer partner selection is another important decision. Therefore in the
initial stage company has to decide which customer type and specific customer
or customer groups will be focused for their CRM effort.
d) DEVELOPING PROGRAMS FOR RELATIONSHIP MANAGEMENT WITH
THE CUSTOMER
There are three types of CRM programs: Continuity Program, One-to- one
Marketing, Partnering Programs. These take different forms depending on
whether they are meant for End Consumers, Distributor Customers, or Business
To Business Customer.
STEP2: CRM GOVERNANCE PROCESS
The governance and management responsibilities are independently or jointly
under taken by relational partners several issues must be addressed.

Role specification

Communication with customers

Planning process

Process alignment

78

Human resource decision

Proper monitoring process

STEP3: CRM PERFORMANCE EVALUATION PROCESS

Periodic assessment of results in CRM is needed to evaluate if programs are
meeting the expectations and if they are sustainable in long run. Performance
evaluation also helps in making corrective actions in terms of relationship
governance or in modifying relationship marketing objectives and program
features.
For measuring CRM:
1. Customer Life Time value is to be calculate
2. Measurement of relationship satisfaction this help in knowing the extent to
which relational partners are satisfied with their current cooperative and
collaborative relationship.
STEP4: CRM EVOLUTION PROCESS
Individual customer relationships and CRM programs are likely to under go
evolution as they mature. Some evolution paths may be preplanned, while others
would naturally evolve. In any case, several decisions have to be made by
partners involved about the evolution of CRM programs. These include decision
regarding

continuation,

termination,

enhancement

and

modification

of

relationship engagement. When performance is satisfactory, partners would be

motivated to continue or enhance their CRM programs. when performance does
not meet expectations; partners may consider terminating or modifying the
relationship.

79

4.5.3

THE CRM VALUE CHAIN

Customer data

Customer information

Customer Knowledge

Customer wisdom

80

4.5.4

CRM Business Cycle

8. 8.
Retain
Retain
valuable
valuable
customers.
customers.
7. 7.
Acquire
Acquire
customers
and
customers
and
prospective
prospective
customers.
customers.

6. 6.
Deliver
Deliver
increased
value
increased
value
toto
thethe
customer.
customer.

1. 1.
Understand
Understand
customers
customers
needs
needs

CRM
CRM

5. 5.
Interact
with
Interact
with
customers
and
customers and
prospective
prospective
customers.
customers.

2. 2.
Differentiate
Differentiate
based
onon
based
customer
customer
needs,
needs,
characteristics
characteristics
and
behavior.
and
behavior.
3. 3.
Develop
Develop
product
product
services
services
Channels
toto
Channels
meet
meet
customers
customers
needs.
needs.

4. 4.
Customize
Customize
byby
customer
customer
segment.
segment.

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CRM Business Cycle

Traditional Approach
Customer contact
Telephone
Mail
In Person
Personal selling
After sale services
Complaint Handling
Account
Management
Customer Care
Customer
Satisfaction

Web-enabled and
Integration Approach
Customer
Information System
Customer Data
base
Electronic Point of
Sale Sales Force
Automation of
customer support
process
Call Centers
System Integration
Life Time Value Of
Customer

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4.5.5

GOALS OF CRM

1.DIFFERENTIATING CUSTOMER:
All the customers are not equal, recognize and reward the best customer. For
this the CRM needs to understand.

Sensitivity, tastes, preference and personalities.

Life style and age

Culture background and education

Physical and psychological characteristics.

2.DIFFERENTIATING OFFERING
A CRM solution needs to differentiate between low value customer and a high
value customer.

High Value customer requiring high value customer offerings.

Low Value customer with potential to become high value in near future.

High Value customer requiring high value service.

3.KEEPING EXISTING CUSTOMER

Grading customer from satisfied to very dissatisfied shall help the

organization in always improving its customer satisfaction level and
scores. As satisfaction level of each improves so shall the customer
retention with the organization.

4.CUSTOMER LIFE TIME VALUE

By identifying life stage and life event trigger the points by customer
,marketers can maximize share of purchase potential.

83

To reinforce the customer relationship, LIC of India has given commitment in

the citizen charter to satisfy the above stated goal of the CRM andLIC of
India has given commitments to maintain the standards to satisfy the
expectations of the customer and make them delighted.
Standards for fairness in dealing with customers

Strive to deal with our customers in an open and transparent manner;

Explain the rationale behind our decisions, consistent with requirements

relating to business principles;

Continuously expand our product line and services to afford wider choice;

Waive/allow payment of interest as a measure of compensation wherever

service deficiency occurs which is attributable to us.

Standards for easy access to information.

Educate the customers and the public of the various options available in
the area of products and services;

Make available to the customers the literatures and brochures relating to

our products and services in the regional languages and in easy to
understand style;

Enlarge the access of the customers to reach out to the organisation

through different channels like help lines, call centres, internet, etc.;

Make available various information on products and services through our

web page on the internet, interactive voice response system, information
kiosks etc.;

Enhance the content, frequency and quality of our communication with the
customers, especially through the mass media like press, television, radio,
etc.

84


Standards for policy servicing

Strive to achieve and excel the benchmarks set forth in the Charter as
displayed in our Branch Offices and those prescribed by the Regulatory
Authority in respect of various aspects of policy servicing;

Review the standards of servicing annually with a view to improving the

benchmarks, wherever necessary;

Respond to all customer enquiries promptly;

Afford the customers, opportunities to provide the Organisation with

feedback about their perception of our services and to suggest
improvements through customer surveys and customer meets;

Enhance customer conveniences through adoption of higher technologies

in the areas of information and communication, simplification of
processes, review and revamp of the systems and methods.

Standards for servicing of sss policies

Improve our communication with the customers under SSS (Salary Saving
Scheme) policies in order to keep them informed periodically of the gaps
and defaults, if any and the policy status;

Enhance the frequency of our liaison with the employers to render high
quality of services free from errors and omissions.

Standards for claim settlement

Strive to settle all maturity claims well in time preferably on or before the
due date, on receipt of all requirements from the policyholders;

Strive to settle all death claims, which do not require investigation, within
30 days of submission of all requirements by the claimants. If there is a

85

delay on our part beyond the stipulated days, pay interest for the delayed
period as prescribed by the irda.

Standards for redressal of customer grievances

Provide opportunity to our customers to meet the designated Grievance

Redressal Officer in all Offices of the Organisation without prior
appointment during the second half of the working hours on all Mondays
and with prior appointment on other working days;

Register all grievances received and strive to dispose off the same within
seven days of their receipt. In case of delay beyond this period, explain
the reasons for delay on request;

Enable a claimant whose claim has been repudiated by the Divisional

Office, the opportunity of appealing for a review by the Claims Review
Committees functional at the Zonal and Central levels;

Provide information to the aggrieved customers about the availability of

the external grievance redressal machinery in the form of Ombudsman.

86

4.6

International Operations

In keeping with the worldwide trend towards globalization and in the wake of
opening of insurance sector to private as well as foreign players in the domestic
market, it was strategically decided to give thrust to the LIC of Indias
international operations. A five year strategy for the expansion of international
operations was approved by the Board in its meeting held on 24 th November,
2001. The expansion plan envisaged identification of regional hubs on the basis
of concentration of people of Indian origin and aggressive expansion of LIC of
Indias operations to more countries.
Existing Foreign Operations :
Prior to nationalization, erstwhile Indian insurers were operating in several
countries whose business vested in the LIC of India on nationalization. In
number of countries where LIC of India had operations, insurance sector was
closed to foreign companies and in some countries the LIC of India chose to
discontinue writing new business and service only existing policies. The LIC of
India continued to transact new business only in U.K, Mauritius and Fiji. The
first effort to expand internationally was made in 1989 when L.I.C.(Intl) E.C. was
established to cater to the insurance needs of NRIs in the Gulf countries. For the
past 4 and half decades, it has been strategy to primarily cater to the insurance
needs of NRIs and people of Indian origin spread all over the globe. Although
exact statistics of overseas Indians are not available, the concentration of Indians
abroad as per the high level committee on Indian Diaspora is estimated to be
over 20 Million. New Ventures of the LIC of India :

87

In pursuit of its corporate strategy, the LIC of India has now established new joint
venture companies namely L.I.C. (Nepal) Ltd. in the kingdom of Nepal on 3 rd
December, 2001 and L.I.C, (Lanka) Ltd. in Sri Lanka on 1 st March, 2003. Both
the joint venture subsidiaries have made significant headway in their respective
markets. The salient features of these two joint ventures are as under
Name of the Company
Nature of operations
Joint Venture partner
Paid up Capital
Pattern of Shareholding

LIC (Nepal) Limited

Joint Venture
Vishal Group
N. Rs. 250 Million
LIC:J.V.Partner:Public
55 : 25
: 20
Date of Commencement 3rd December 2001
of operations
New business completed
as on31 December, 2004:
Number of policies
20985
Sum Assured
N.Rs. 252.19 crores
First Premium Income
N.Rs. 11.54 crors

LIC (Lanka) Limited

Joint Venture
M/s. Bartleet & Co. Ltd.
SL. Rs.100 Million
LIC:J.V.Partner:Public
75 :
25
: Nil
1st March 2003

8958
SL Rs. 136.50 crores
SL Rs. 6.85 crores

LIC (International) E.C., the subsidiary of the LIC of India recently extended its
operations to Sultanate of Oman by starting its first full fledged branch office at
Muscat on 23rd December, 2003. The company has now established presence in
all the GCC countries.
The LIC of India has also registered L.I.C. (Mauritius) Offshore Ltd. on 19th
January, 2001 and has received offshore certificate from the regulators on 4 th
May, 2001. It has been decided to tap life insurance and reinsurance business
potential in African countries through the offshore company and efforts are
underway to soon launch operations initially in Botswana through broker
arrangement. It is a joint venture between L.I.C. of India & G.I.C. of India with an
initial capital of US$ 5,50,000 shared in the proportion of 70:30 respectively.
In addition to expansion of international operations, the LIC of India has entered
into Third Party Management Agreement on 15 th April 2003 with M/s Teachers
Provident Society to restructure and strengthen the U.K. branch.

The

88

restructured U.K. operations were re-launched on 9 th February, 2004 and it is

expected to significantly improve the productivity and profitability of U.K.
operations. The Government has sanctioned injection of capital of 10 Million to
meet the U.K. solvency standards and the expenses of restructuring. We have so
far remitted 5 Million and the balance amount will be remitted as and when
required to support the growth in new business.
Need for change in Perspective :
With the process of globalisation all around LIC of India, it may not restrict its
international operations only to countries having larger concentration of ethnic
Indians. In fact the people of Indian origin who are in second and third
generation have integrated with the communities of their respective country to
such an extent that their insurance needs can be hardly differentiated from the
local nationals. The recent market research done in U.S. & U.K. reveal that the
ethnic Indians of subsequent generation have little or no affinity towards their
country of origin. LIC of India should not remain only a Niche Player operating in
Customer Segment of PIOs / NRIs but should target general population of the
country. LIC of India will be in competition with other multinational companies
coming from developed world like USA, Japan, UK etc.
Objectives of International Operations :
In view of widening of LIC of Indias perspective and shifting the focus from
overseas Indian population to Global life insurance market, its objective could be
recast as under:
- To harness international market potential including the Indian population of
more than 20 Million spread all over the globe.
- To make significant contribution from the International business to overall
performance of the LIC of India.
- To increase share of the LIC of India in the global market

89

- To optimize

utilization

of Coprorations professional

and

technical

capabilities acquired over past 4 and half decades and large skilled human
resources.
- To keep pace with the developments taking place in international insurance
market and based on our experience in the international market to introduce
best practices in the domestic market.
- To develop Global Managers for International Expansion
- To establish new Organisational Structure for International Operations on
Strategic Business Unit Model
-

Further expansion to other unexplored markets

Having defined the objectives, LIC of India need to do resource planning striking
appropriate balance between requirements of domestic and international market.
Capability & Resource Requirements
During existence of over four & half decades, LIC of India have made
tremendous progress, not only in new business, but also made tremendous
strides in every aspect of life insurance business, be it a Actuarial, Investment,
Information technology, marketing and training. It will be far from truth, if LIC of
India form an impression that its slow growth abroad was because of our
inabilities and functional inadequacies. In fact all these years its focus was on
domestic market and foreign operations never formed its priority spectrum.

90

4.7

Organisational Structure of LIC of India.

LIC of India has a Vertical Hierarchical Structure. After the process of

liberalisation there is no change in the Hierarchical structure of LIC of India. But
there Is a proposal to reduce layers in the organisation of division offices. LIC of
India has a four fold organisational structure.
1) LIC of Indias Corporate Management
2) Organisation of zonal offices
3) Organisation of division offices
4) Organisation of branch offices
Organisation of division offices are working under the organisation of zonal office
and Organisation of zonal offices are working under LIC of Indias corporate
Management. Branch offices are working under the organisation of division
offices. Branch offices are Revenue centre for LIC of India.
Brief Layout of Organisational Structure of LIC of India is as under,

91

Here each and every fold has its organisational structure.

92

93

94

95

96

So far as Organisational changes are concern there is not any remarkable

changes. Still LIC of India has a Vertical Heretical organisation. There should be
flatter hierarchy or minimum layer in the organisation to speed up the
communication and building up a strong co ordination. Through the flatter
organisational structure LIC of India can make faster decision making process
and the control over the organisation can be made effective.
The prospective changes in the organisational structure would be at
branch level. There is proposal to remove cadre of record clerk and higher grade
assistant. The work of record clerk would be assigned to the assistant and the
work of the HGA would be assigned to the AAO. So by this way two layers can
be reduced that will help in building a flatter structure. Even there is a proposal in
vision 2010 to remove cadre of development officers and building up an
alternative distribution channel. Unions are so powerful in LIC of India, there is a
trade union of each and every class. Due to the strong unions management is
not able to take decision for the reduction in the layers of the organisation.

97

4.8 LIC of India vs Private players

1. Life Insurance Company Of India

The Life Insurance Corporation of India (LIC) is the only public sector life
insurance company in India. Its corporate office is based in Mumbai. Currently, it
has 7 zonal offices, 100 divisional offices and 2.048 branch offices across the
country.
Private insurance companies
1. Allianz- Bajaj Life Insurance Company
Allianz Bajaj Life Insurance Company is a union Allianz AG, the worlds leading
insurer and Bajaj Auto Limited, one of Indias most respected names. Allianz AG
has over 110 years of financial experience in over 70 countries and Bajaj Auto
Ltd household name is trusted for over 55 years in the Indian market.The
Company started operations in India in October 2001. It has a network of 75
branches covering 52 centres through more than 32.000 certified well-trained
agents. Its headquarters is based in Pune, Maharashtra.
2. Amp Sanmar Life Assurance Company
AMP Sanmar Life Insurance Company is a joint venture between AMP of
Australia and the Sanmar Group of Chennai, Tamil Nadu. AMP is a leading
international financial services group with over 150 years operation and with core
business in insurance, asset management and financial planning while the
Sanmar Group is a leading industrial group in South India. With its headquarters
in Chennai, Tamil Nadu, the Company has a major presence in the southern
Indian states of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu.

98

AMP SANMAR has closed its operation in India and it is taken over by Reliance
Life Insurance Co.
3. Aviva India Life Insurance Company
AVIVA India Life Insurance is a joint venture between Dabur, one of Indias oldest
and largest group of companies and AVIVA, UKs largest insurer. Today, AVIVA
plc is the worlds seventh largest insurance group with 25 million customers in
over 30 countries and assets under management in excess of US$ 300 billion.
With diversified insurance business spanning the globe, AVIVA plc is powered by
a dedicated team of 59.000 employees and over 40 exclusive Banc assurance
partnerships. Founded in 1884, Dabur has now an annual consolidated turnover
in excess of Rs 1.232 Crores and is the countrys leading producer of traditional
healthcare products. AVIVA is the market leader worldwide in alternate channel
distribution, close to 27 % of the group premium is contributed by this channel
across the world. In India,73 % of premium is collected through this alternate
channel. AVIVA India has now extended its presence to 21 branches.
4. Birla Sun Life Insurance Company
Birla Sun Life Insurance Company is a joint venture between the Aditya Birla
Group (one of Indias largest business houses) and Sun Life Financial, Canada.
5. Hdfc Standard Life Insurance Company
HDFC Standard Life was incorporated on 14th August 2000 under the name of
HDFC Standard Life Insurance Company Limited. While Housing Development
Finance Corporation Ltd. (HDFC) is a leading private sector housing loan
corporation of India, Standard Life is a leading global life insurance company.The
Company currently has around 49 locations across the country to operate life
insurance business. Its headquarters is based in Mumbai.

99

6. Icici Prudential Life Insurance Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,
a leading private sector bank in India and Prudential Plc, a major international
financial services group headquartered in the United Kingdom. ICICI Prudential
was amongst the first private insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory and
Development Authority. The Headquarters of ICICI Prudential is based in
Mumbai.
7. Ing Vysya Life Insurance Company
ING Insurance one of the worlds largest insurance companies has joined
hands with Vysya Bank, one of Indias leading private sector banks, to form ING
Vysya Life Insurance. The Vysya Bank, which has an equity participation from
Bank Brussels Lambert, is one of the largest private banks in India with some
500 retail outlets. The ING Group is a global financial institution of Dutch origin,
which is active in the field of banking, insurance and asset management in over
60 countries. ING Insurance is also the worlds second largest life insurance
company as per the latest Fortune rankings. The Company, which is
headquartered in Bangalore, and has commenced its operations in Mumbai and
Delhi, is the first bancassurance venture in the country.
8. Max New York Life Insurance Company
Max New-York Life is a partnership between Max India Limited, one of Indias
leading multi-business corporations and New-York Life, a fortune 100 companies.
Founded in 1845 and headquartered in New York City, New York Life and its
affiliates offer life insurance, annuities and long-term care insurance. It has
positioned itself on the quality platform. In line with its vision to be the most

100

admired life insurance company in India, it has developed a strong corporate

governance model based on the core values of excellence, honesty, knowledge,
caring, integrity and network. The Company has a national presence with a
distribution network of 35 offices and representatives across 27 cities across
India. It has already more than 1.000 employees and 5.000 agents. Its
headquarters is based in Gurgaon, Haryana
9. Metlife India Insurance Company
Metlife India Insurance Company Private Limited (Metlife/India) is the Indian
affiliate of Metropolitan Life Insurance Company (Metlife), a major life insurer in
the United States, based on approximately US$ 2,4 trillion in life insurance inforce as of December 2002. Melfife India was incorporated in April 2001 as a joint
venture between International Holdings, Inc., The Jammu and Kashmir Bank, M.
Pallonji and Co.Private Limited and other private investors.The Company
benefits from its affiliate companys 135 year old expertise and track record of
establishing successful operations in emerging markets, in addition to the unique
strength of its Indian promoters. Metlife India is headquartered in Bangalore and
has offices in 9 cities and an additional 1.000 outreach points through its
distribution channel partners.
10. Om Kotak Mahindra Life Insurance Company
OM Kotak Mahindra Life Insurance Company Limited (OMKM) is a joint venture
between Kotak Mahindra Bank Ltd. (KMBL), and Old Mutual Plc, a major
international financial services group. The Company launched is insurance
services in India in 2001. The headquarters of the Company is based in Mumbai.
The rural insurance product of the Company has penetrated mainly into the
states of Gujarat and Haryana.
11. SBI Life Insurance Company

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SBI Life Insurance Company Ltd. Is a joint venture between the State Bank of
India and Cardif S.A., a leading life insurance company in France. The Company
has been issued the license to conduct life insurance business in India in March
2001. The headquarters of the Company is based in Mumbai.
12. TATA AIG Life Insurance Company
TATA AIG Life Insurance Company Limited is a joint venture between the TATA
Group of companies in India and the American International Group, Inc (AIG), a
leading United States based international insurance and financial services
organisation and the largest underwriter of commercial and industrial insurance
in the U.S. While the TATA Group of Companies is one of the largest and most
successful private commercial groups in India, AIGs Life Insurance operations
comprise of the most extensive worldwide network of any life insurer. AIGs
member companies write a wide range of commercial and personal insurance
products through a variety of distribution channels in over 130 countries and
jurisdictions throughout the world. The Company is headquartered in Mumbai,
with branch operations in Delhi, Chennai, Bangalore,Hyderabad, Kolkata, Pune
and Chandigarh.

102

103

104

105

106

Coverage statistic in rural and Social Sector

Rural Sector

107

Social Sector

108

4.9

Diversified businesses.

4.9.1 LIC Housing Finance Ltd.

Is one of the largest Housing Finance companies in India. Incorporated on
19th June 1989 under the Companies Act, 1956, the company was promoted by
LIC of India and went public in the year 1994. The Company launched its maiden
GDR issue in 2004. The Authorized Capital of the Company is Rs.1000 Million
(Rs.100 Crores) and its paid up Capital is Rs.850 Millions (NSE & BSE and its
shares are traded only in Demat format. The GDR's are listed on the
Luxembourg Stock Exchange.
The main objective of the Company is providing long term finance to
individuals for purchase / construction / repair and renovation of new / existing
flats / houses. The Company also provides finance on existing property for
business / personal needs and gives loans to professionals for purchase /
construction of Clinics / Nursing Homes / Diagnostic Centres / Office Space.
The Company possesses one of the industry's most extensive marketing network
in India : 6 regional offices and 115 area offices backed by chain of camp offices
nationwide, an offshore office in Dubai and Registered and Corporate Office at
Mumbai. It has a team of 875 dedicated employees. In addition the company has
appointed over 5500 Direct Sales Agents (DSAs) and Home Loan Agents (HLAs)
to extend its marketing reach. 16 Back Offices spread across the country
conduct the credit appraisal and administrative functions.
The Company has set up a Representative Office in Dubai to cater to the
Non-Resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait,
Qatar and Saudi Arabia.
109

Today the Company has a proud group of over 8,00,000 prudent house
owners who have enjoyed the Company's financial assistance. The Company
has so far disbursed Rs.250 Billion (Rs.25000 Crores). The Company also lends
to Corporate Bodies and Companies under different schemes for purchase /
construction of office premises for their own use, construction of staff quarters
and also for onward lending to meet the requirements of employees, and also to
Builders and Developers for residential and commercial projects.
In 2005-06, for the fifth year in a row, the Company received the 'AAA' credit
rating from CRISIL, indicating the highest level of safety. The Company has been
growing steadily since inception both in terms of business & profits.

The Company has floated a 100% subsidiary LIMITED to conduct the

business of providing 'Assisted Living Community Centres' for
Semi

4.9.2

Subsidiary of LIC Housing Finance Limited

LIC Housing Finance Ltd. has launched a fully owned Subsidiary Company under
the name of "LICHFL CARE HOMES LIMITED" with the purpose to carry on the
business of setting up and running Assisted Living Community Centres / Care
Homes within the country. The need for such assisted community living is
growing fast with the rapid growth of aging population. A report for UN General
Assembly projected that the proportion of older persons is rapidly going up to 1 in
4 from a previous no. of 1 in 14. The aged population in India alone by 2047, is
likely to touch its total population of 1947. For a majority of aged people, their
children are working and settled at other locations and hardly they do have the
time and aptitude for taking care of their seniors in a highly demanding work
environment. The elders are becoming aware of the risk of living longer with

110

loneliness, psychological emptiness, lack of safety and security, lack of logistics

for instant health care and proneness of elders to exploitation. This leads
sensible people towards a community living of togetherness, a life of caring and
sharing, peer group company in a community living.
This is going to be a strong social need which has got tremendous business
opportunities while it can discharge a very important corporate social
responsibility.
This company has started its first Care Homes project at Bangalore in an ecofriendly self- contained retirement village situated at a near suburb of Bangalore.
Amidst verdant greenery and tree-lined pathways, independent cottages are well
spread out as per Vaastu with skid-free flooring, glare-free surfaces, supportive
railings, instant-alarm system, internet, telephone, TV connections, etc. Care
Homes is fully self-contained and structured to take care of every possible need
of the residents. Velvety grass lawns here tempt for a barefoot stroll under the
shades of the trees leading to the water front while birds chirp to your foot steps.
The meditation centre at the middle of the lake is a haven of tranquility.
The community kitchen with homely food frees the elderly lady from the confines
of the kitchen. In-campus Health-Care, 24 hrs security with the freedom to
indulge in satisfying hobbies, evening get-togetherness of peer group people
either chanting a bhajan or watching a hilarious movie on the home theatre with
the emotional and psychological support of a community living is indeed a
satisfying life style of dignity, comfort, privacy and independence.
Regular attendance of doctors with alternative medicines of Allopathy,
Homoeopathy, Ayurveda, 24 hrs vehicle with driver, attendants for household
chores, library, community centre, home theatre, laundry, health club,
departmental store, post office, ATM Bank and guest house makes your social
life and personal life very comfortable and satisfying.

111

4.9.3

LIC Mutual Fund

SET UP OF THE FUND

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989
and contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund
was constituted as a Trust in accordance with the provisions of the Indian Trust
Act, 1882. The settlor is not responsible for the management of the Trust. The
settlor is also not responsible or liable for any loss or shortfall resulting in any of
the schemes of LIC Mutual Fund. The Trustees of the LIC Mutual Fund have
exclusive ownership of Trust Fund and are vested with general power of
superintendence, discretion and management of the affairs of the Trust. Jeevan
Bima Sahayog Asset Management Company Ltd. was formed on 20th April 1994
in compliance with the Securities and Exchange Board of India (Mutual Funds)
Regulations, 1993. The Company commenced business on 29th April 1994. The
Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset
Management Company Ltd as the Investment Managers for LIC Mutual Fund.
The Trustees are responsible for appointing a Custodian. The Trustees should
also ensure that the activities of the Trust and the Asset Management Company
are in accordance with the Trust Deed and the SEBI Mutual Fund Regulations as
amended from time to time. The Trustees have also to report periodically to SEBI
on the functioning of the Fund The investors under the schemes can obtain a
copy of the Trust Deed, the text of the concerned Scheme as also a copy of the
Annual Report, on a written request made to the Jeevan Bima Sahayog Asset
Management Company Limited at a nominal price of Rs. 10/-.

112

5.0

Analysis, Findings and Recommendations

5.1

Competitive strategy analysis.

5.1.1

Portals Five forces Model

SUPPLIER POWER
Being a insurance industry there is
no role of supplier.

THREAT OF NEW
ENTRANTS

THREAT OF
SUBSTITUTES

BARRIERSTO ENTRY
Absolute cost advantages
Proprietary learning curve
Government policy
Economies of scale
capital requirements
Brand identity
Switching costs
Access to distribution
Expected retaliation
Proprietary products

-Switching costs
-Buyer inclination to
substitute

-Price-performance

trade-off of
substitutes

BUYER POWER
Bargaining leverage
Buyer information
Brand identity
Price sensitivity
Product differentiation
Buyers' incentives

DEGREE OF RIVALRY
-Exit barriers
-Industry concentration
-Fixed costs/Value added
-Industry growth
-Intermittent overcapacity
-Product differences
-Switching costs
-Brand identity
-Diversity of rivals
-Corporate stakes

Threat of New Entrants i.e. Private Players

LIC of India upholding absolute cost advantage over the private players
due to more cumulative experience, well established distribution network,
infrastructure and product know how.

113

 As such government policy is not favourable, however the government

guarantee to LIC of India wins the loyalty of the customer over the private
players
LIC of India has a brand equity over private players. Even it has won the
award of the Most Trusted Service Brand. So far as customer loyalty is
concern private players are far behind of LIC of India.
Switching cost is very high, if a policy holder wants to change the insurer,
he has to surrender his policy. This is a loss making preposition for him.
New entrant private players require huge capital for the investment
LIC of India has a wide and strong distribution network which covers each
and every corner of the country. It might be a big challenge to the private
players to have a access of the distribution channel.
LIC of India aggressively performs retaliation over the private players
As such there is nothing like proprietary in service industry every thing can
be copied or hired, how ever LIC of India holding Jeevan Anand policy as
proprietary product.
Bargaining Power of buyer
After the insurance field opened up, the buyers have more choices. So
they can exercise their bargaining power. In such situation customer
relationship management become significant. Higher bargaining power of
buyer lowers the profitability.
Due to presence of private players, each and every company has to
promote their product through various promotion tools. This campaign
brings customer awareness. With the full information customer is in
position to bargain to have a better deal. Bimagold a product of LIC of
India has a highest sale over the mahalife a popular product of the Tata
AIG insurance company.

114

 LIC of India is a most trusted service brand. Customer loyalty lies with the
LIC of India. So this brand identity also effect the bargaining power of the
buyer. Most trusted brands lowering bargaining power of the buyer.
In competitive scenario it is always found that buyers are more price
sensitive. Comparative Low premium of LIC of Indias products have
competitive advantage over the private players.
Product differentiation is the best tool to reduce the bargaining power of
the buyer. LIC of Indias Joint Life Policy, New Janraksha Policy, Jeevan
Anand Policy are differentiated product from the product of the private
players. Such products are not available with the private players.
Buyer getting incentives in the name of premium rebates. To reduce
bargaining power of buyers some of the private players offering gift to the
big sum assured policy holders. In LIC of India India it is a practice that
agents offers rebate on premium in form of incentive to buyer. Though it is
illegal, it is in practice
Threat of substitute
As such there is not any substitute to the insurance. But the various
insurance product has a substitute. LIC of Indias Bima Gold Policy
became a substitute to the Maha Life Policy of the Tata AIG.
Price performance of substitute product is also taken in to consideration.
Some of the plans of LIC of India have a higher premium but they are
price performer. The Plans with a very good features and higher yield
become a substitute to the product of private players.
Threat of Suppliers
Being a insurance company there is no role of suppliers

115

.
5.1.2

SWOT Analysis of LIC of India

Strenght

Brand Equity

Wide reach

Wide range of product

Human resources

Hi-Tech operations

Guaranteed by government of India

Large reservoir of life fund

Long and strong history of solvency

Deep penetration in rural area

More than 13 crore policyholders

Large market share, sustainable low cost operations, i.e. economies of

scale

Weakness

Being a public sector company beaurocratic organization

No flexibility

Strong presence of trade unions

Semi skilled work force and their attitude toward work

Opportunity

The insurable population is immense

Ratio of premium in % to GDP is indeed comparatively low in India

Indias rank is

based on insurance density per capita

116

Fast growing middle class of 450 million people who can afford insurance

Changing pattern of family dependency

Increasing rural prosperity

Increasing no. of working woman

Threat

5.2

Presence of private players

Trend of falling interest rates

Change in government policy

Becoming product life cycle shorter and shorter

Multiplicity of choice to the customers

Intervention of trade unions

Employee turn over

Analysis through Primary Research
Questionnaire survey: Likert scale
We have apply following methods

1) Design: Descriptive Designs

2) Sampling: Non Probability- Convenience Sampling
3) Sample Size: Confidence level approach method with risk 5% and Margin
of Error + 10%
4) Questionnaire: a) Interviewer administered personal interview.
b) Likert Scale and Semantic Differential Scale would be
used
5) Data Collection: -In respect to data collection proposed study based on
secondary data but as per the requirement primary data would be
collected from the market.
6) Sources of Data: a) Original Data Published and Unpublished from the
Official sources such as Lic of India, IRDA.
117

b) Public Documents, Reports, Previous researches,

Magazines and News Papers.
c) Websites
d) Personal Interviews

Questionnaire
Sr
No.
1

Questions

Process of Liberalization, Privatization And

Globalization will strengthen Indian economy and
make sustainable development
Liberalization of insurance sector will open new
horizons for Indian insurance industry
Lic of India failed to tap the Life insurance market up
to its potential
Initiatives in response to liberalization of Life
insurance sector is taken due to the failure of LIC of
India in respect to New business Procurement,
Insurance awareness, tapping a rural potential,
customer services and contribution in development of
economy.
FDI Limit in insurance sector should be more than
existing limit (26%)
Private players are growing at furious pace and they
are becoming a challenge to LIC of India
Pre liberalization scenario LIC of India was a typical
bureaucratic governmental organization
LIC of India has good office infrastructure and
environment
LIC of India has a workforce who are

a
b
c

Knowledgeable
Skilled
Co-operative

2
3
4

5
6
7
8

Stron
-gly
Disagree

Mode- Neu Mode- Strorately -tral rately ngly

disAgree Agree
agree

118

d
e
f
g
h
i
10

15

Committed
Sensitive
Caring and courteous
Diligent
Non corrupted
Computer savvy
IT initiative in LIC of India speeded up due to
liberalization
LIC of India has a wide range of products that satisfy
the needs of each segment of customer
Lic of India is innovative in product designing
Market linked insurance policy of LIC of India getting
strong position in market
LIC of India is aggressive to tap the market of
retirement solution
LIC of India emphasizing to promote

A
B
C
D
E
F

policies with reversionary bonus

policies with guaranteed addition
policies with loyalty addition
Market linked policies
Retirement solutions
Term insurance

16

LIC of India has a strong and wide network of field

force
LIC of India strives to develop alternative distribution
channel i.e. corporate agents, brokers and bank
assurance
LIC of India explains the rationale behind its
decisions, consistent with requirements relating to
business principle
LIC of India continuously expand its product line and
services to afford wider choice of the customer
LIC of India afford the customers opportunities to
provide the organization with the feed back about
their perception of services and to suggest
improvements through customer survey and
customer meet

11
12
13
14

17
18
19
20

21
A
B
C
D
E

Private Players Compared to LIC of india are

Trusted Brand
Better customer services
Innovative in Products
Wide Range of Porducts
Better Infrastructure (Assets and Properties)

119

F
G

Ambient and Good Looking offices

Growing at Furious pace

For Employees Only:

Lic of India works towards ensuring job satisfaction

and send of pride

LIC of India provides an environment and

opportunities for growth to enable them to realise
their full potential

LIC of India takes steps to develop professional skills

to enable employees to handle their assignments
mote efficiently
LIC of India also succeeded in diversified business
like.. Mutual fund, housing finance etc.
LIC of India would enter in banking and general
insurance.

4
5

A.

120

B.

C.

121

D.

5.3

Findings

5.3.1

Organisational structure

There is no Remarkable change in Organisational Structure after

liberalisation.

Vision 2010 Document has proposed to remove the cadre of Development

officers

Proposal to remove Higher Grade Assistant and Record Clerks

Problem Areas

122

Vertical tall hierarchy

Many layers

Control and Co ordination

Implementation of Strategy

Slow Decision Making Process

Intervention of Union in Down sizing

5.3.2

Infrastructure and Technologies

Following changes have taken place after liberalisation

Ambient and Ergonomic office environment

Location at convenient Place

Local Area Network established in 1999-2000

Wide Area Network introduced in 2001 to cover 100 divisional offices

connecting all the branches.

Online premium payments in 2003

Interactive Voice Response System

Short Messaging Solution broadcast module

Infocentres in 2002

150 Kiosks

Infomedia Software for agents

Portal for Public as well as work force

Infrastructure and Technologies

Problem Areas

Semiskilled Personnel

Resistance to change and adopt new technologies

Union intervention

Negligible Usage and awareness about online Premium payment

Info media Software: Agents are not trained and not computer savvy.

Many Branches are still not modernized

SMS Module is launched but not used up to its full utilization capacity

5.3.3

HR practices and IR.

123

Following changes have taken place after liberalisation

Employee turnover has increased

Expert people from Marketing, Finance, HRD and actuaries are high in
demand

Started recruiting MCA, CA and MBA for various cadres.

Employee benefits like Personal Advances, Mediclaim, Group Insurance

and LTC etc..have become attractive

EXIT Policy for Non Performing staff is introduced.

Training became essential part of Job Requirement

Problem Areas

Introduction of VRS Scheme

Union Intervention

Performance Apprisal based on CR for class-III and IV Employee

No seriousness about training

5.3.4

Alternative distribution channel

Following changes have taken place after liberalisation

Thrust has been given to recruit more corporate agents and brokers

Highest Growth in business is realised through Alternative distribution

channel

Many banks have Joined insurance business as corporate agents and

referral.
Problem Areas

No Joint venture with Banks

Distribution channel is not techno savvy

124

5.3.5

CRM

IT enabled CRM Module is introduced

Commitment to the customer in citizen charter to maintain the standard of

services and bench marks

5.4

Recommendations

Organisation should have flatter hierarchy

There should be process of Downsizing

Organisation should be functional rather than divisional

Portal for Public should be launched

SMS Module should be extensively used for the public to cater better
services

Websites should be aesthetic, Informative and user friendly

Encourage people to pay online payment through advertisement

campaign.

Training should be given to the workforce by Professional Trainers on

continuous basis.

Performance appraisal should be on merit basis.

Hunting B-schools to create Talent Pool.

Union intervention to be minimize.

Enter in to Banking industry.

125

6.0

GLOSSARY: Terms Commonly Used In The Insurance Sector

Actuary

Someone who uses applied mathematics (in

particular, probability calculations)
solutions

to

to

insurance-related

provide

problems.

Actuarial techniques are used to design new

products and to assess the probability and risks
of existing and new business
Adverse Selection

The tendency of persons who know they present

high risks to enrol in an

insurance

plan

covering these particular risks. For instance,

people suffering from critical illnesses purchasing
health insurance
Agent

An insurance company representative who sells

insurance

policies. Agents

usually

earn

commission or a fee for their advice or on the

sale of a policy and can deal only with one
insurance company
Annuity

An annuity is a regular payment designed to give

the

policyholder

an income

retirement. It is paid

for

by

for
a

life

after

lump

sum

saved during the policyholders working lifetime

in a pension product

126

Assignment

A policy which has been assigned by the

policyholder with an institution as beneficiary in
case a claim arises

Beneficiary

The person who enjoys the rights, title and

benefits under the policy that is being bought

Bonus

Interest earned on the premium paid to an

insurance company or an additional sum that
the policyholder receives in addition to the basic
sum insured on a yearly basis

Broker

An intermediary between an insurance company

and a policyholder. He is the representative
of

the

insured,

although

he

receives

compensation in the form of a commission

from the insurance company. Brokers
be

registered

as

independent

must

as

per

regulations and are authorized to deal with more

than one insurance company
Cancellation

A policy or proposal that is cancelled by the

insurance company on account of reasons the
information given by the potential customer or
policyholder is found incorrect, inadequate or
fraudulent

Cashless services

financial

policyholder

arrangement
to

access

that

allows

the covered health

services without having to pay. The

health

127

provider sends the corresponding invoices to

be settled to the insurance company
Claim

A call by a policyholder to the benefits payable

under the terms and conditions of a policy

Claims Rate

The percentage of claims received viz the total

number of policies in force during a given period

Coinsurance

When different insurance companies share

specified percentages of risks attached to a
policy

Commission

The amount as percentage of premium paid

by the insurer to the agent for selling the
insurance product

Compulsory Cover

A policy that is made mandatory for the customer

to buy

Covariant Risk

Risks that affect simultaneously a great

number of policyholders. Example of flood or
earthquake for assets or life coverage.

Credit Life

An insurance cover that is linked with credit

activities and aims to protect the credit

Deductible

The amount that an insurance company is

allowed to deduct from the amount to be paid for
a claim. This co-payment mechanism aims to
reduce moral hazard

128

Deferred annuity

When the policy-holder

chooses the date to

take the first payment after a specified period,

the purchase price (of the policy) can be paid
back to the insurer either in lump sum or in
instalment
Eligibility

Requirements

imposed

by

the

company to the client allowing

subscribe to a policy. One

insurance
him/her

of

the

to

main

requirements is the age bracket within which one

person can propose for insurance product
Endowment

A form of life insurance where the face value is

payable either to the insured at the end of the
contract

period or to a beneficiary if the

insured dies before the maturity period

Exclusion clauses

Specific situations, conditions or circumstances

that are listed in the contract
covered.

In

such

as

not

being

circumstances

the

policyholder or nominee does not get any benefit

Face value

Amount

to

be

paid

by

the insurance

company to the insured (or nominee) in case of

any unfortunate incident occurs during the policy
period

or

endowment

maturity
policy).

of

policy

(in

case

of

This amount does not

include the additional bonus

Grace period

Period of time during which the policy remains in

force with or without penalty in spite of non-

129

receipt of premium. The risk is fully covered

under such a period
Guaranteed additions

These are calculated at the rate (that is

fixed by the respective insurance companies)
for a sum assured. This is then added to the
basic

sum

assured

every

year

and

are

payable on admission of claim. The rate is

guaranteed

not

to

fall

(or

increase).

For

instance, the Life Insurance Corporation

India

makes

its

of

guaranteed additions per

every Rs. 1.000 of sum assured

Health Insurance

Insurance cover towards unexpected ill health

In force

An insurance policy is in force from its start

date until the date it is terminated,
time the

insurance

premium

are

till

such

regularly

received when they are due

Insurable Risk

Risk for which an insurance cover can be

provided
Insured

The policyholder who is covered by an insurance

company
Lapse

Termination of contract when the premium is

not paid within the grace period. The risk is not
covered under such a period

Life Insurance

Insurance cover on the lives on human being

130

Life Savings

Savings which have been accumulated over the

period of the policy tenure

Loyalty additions

Additional benefits available to policyholder on

certain policies that are payable only on maturity
of the policy and provided the policy has been
kept

in

force.

The

respective

insurance

companies, on the basis of their experiences and

performances, determine such rates
Lump sum

A method of settlement whereby the beneficiary

receives the entire proceeds of a policy at once
rather than in instalments

Maturity

The date that an insurance product finishes or

matures, and the proceeds

of

the

policy,

sometimes

maturity

value,

known

as

the

become payable
Moral Hazard

A dishonest predisposition or behaviour on the

part of an insured that increases the risks
attached to a policy

Mortality rate

The number of deaths in a group of people,

usually expressed as deaths per thousand. It
can be the rate for the total population, called the
crude mortality rate, or it can be refined by
factors such as age groupings or causes of
death

Nominee

The person nominated by the policyholder

131

to receive the sum assured in case of the

death of

the policyholder during the term

period
Option

Choice that a potential customer has when

h/she is willing to buy an insurance cover

Penalty

The charges levied on an insurance product on

account of delay of premium from the due date

Policy

A written and stamped document established for

the purchase of an insurance

product

that

contains the terms and conditions of the

contract

between

the

insurer

and

the

policyholder
Policyholder

The person on whose name the policy bond is

issued
Premium

Payment made to the insurance company to buy

a policy and to keep it in force. Usually paid
monthly, quarterly, half yearly, annually or as a
single lump sum

Recurring Premium

Regular premium to be paid to an insurance

company during the policy period

Reinsurance

An insurance that an insurance company buys

for its own protection. The net premium is the
result after having paid for these reinsurance
services

(gross

premium

income

less

132

reinsurance costs)
Return on premium

A rider on a life insurance policy providing

that, in the event of the death of the insured
person within a specified period of time, the
policy will pay, in addition to the face amount, an
amount equal to the sum of all premiums paid to
date. This is a form of Increasing Term
Insurance and is used as a sales tool

Return of premium

The total premium on a term policy which

is paid back to the policyholder on maturity of
the policy

Rider

Agreement attached to a policy by which the

conditions of the policy are expanded or an
additional coverage added. In short, additional
coverage

benefit

added

to

regular

insurance contract on the payment of some

additional premium
Risk Premium

The part of the premium which is allocated

towards the payment of the claim also known
as pure premium

Screening

Process through which the insurance company

verifies that its criteria are met before issuing a
policy

Sub-standard life

Any individual who cannot be granted an

insurance policy under the normal premium
rates because of health grounds

133

Sum assured

The amount for which the insurer has agreed to

pay in the event of death or maturity provided
the policy is kept in force

Surrender value

The amount payable at the time when the

policyholder terminates the contract

at

specified period (this period varies between

different insurance companies) from the date of
commencement of the policy. The surrender
value is equal to sum paid till date multiplied
by the surrender value factor
Term insurance

Pure risk cover where full sum assured is

payable only if death occurs during the policy
term. The sum assured is not returned back to
the policyholder in case s/he survives the term
period

Third Party Administrator

A party that is employed by the insurance

company to enable the insurance business by
providing

health

services

essential

to

the

issuance of policies or the processing of

claims. However, a TPA cannot sell insurance
products.

TPA

may

work

with

several

insurance companies
Total Insured Benefit

The total benefit an insured person will receive at

the time of claim

Traditional products

Insurance products which are invested in a

134

single fund and the policyholder has no way

of tracking the

fund

performance

of

fund

options
Underwriter

Someone who is willing to assume an insurance

risk in exchange for payment of a premium.
The term derives from the

practice

of

the

person who accepted the risk signing their

name under the amount they insured (thereby
entering into a contract)
Underwriting

The analysis of risks presented by a particular

customer prior taking the decision to cover these
risks

Unit linked products

Products where the risks and savings in an

insurance product are clearly defined and the
savings are invested in a unit trust fund. A
unitised contract where the price of the units is
directly related to the value of assets in the fund,
or unit trust

Valuation

A periodical investigation to check the solvency of

the insurer
Voluntary Cover

A policy that the potential customer is free to

refuse, as opposed to a mandatory cover

Waiting period

The period between the purchase of a policy

and the time when the coverage becomes
effective. Often used for health insurance in

135

order to reduce the risk

Whole life insurance

Insurance payable to a beneficiary at the

death of the insured, whenever that occurs

7.0

Bibliography

7.1

Websites
1) WWW.licindia.com
2) www.irdaindia.org
3) www.prgindia.com
4) www.insuranceinstitureofindia.com

7.2

Books
1) IC-7 Published by III
2) IC-8 Published by III
3) Insurance industry in Indian perspective Vivek Gupta
4) The Golden iceberg by M K Kureti

7.3

Magazines/ Reports
1) Insurance watch
2) Insurance world
3) Insurance times
4) Yogakshama
5) Excellence
6) LIC Compendium

136

7) RBI annual Report

8) R N Malhotra Committee Report
9) BIMA Vidya
10) IRDA annual Report.

137