TRAINING REPORT

ON
PROJECT REPORT ON ROLE OF INFORMATION
TECHNOLOGY IN LIC
Submitted to:
Satyug Darshan Institute of Engineering and Technology

By:
AKASH KALRA
Batch 2015 – 2018

In Partial Fulfillment of
Bachelor of Business Administration
(IIFSB)

MAHARSHI DAYANAND UNIVERSITY

ROHTAK (HARYANA)
(November, 2016)

Satyug Darshan Institute of Engineering and Technology

BhupaniLalpur Road, Village Bhupani
Faridabad - 121002, NCR, Haryana, India
 DECLARATION

I, Mr. Akash kalra hereby declare that this summer training report is the
record of authentic work carried out by me during the period from
_____ to_____and has not been submitted to any other University or
Institute for the award of any degree / diploma etc.

(Signature)
Akash kalra

Date
BONAFIDE CERTIFICATE

This is to certify that Mr. Akash Kalra of Satyug Darshan Institute of

Engineering and Technology has successfully completed the project work titled
PROJECT REPORT ON ROLE OF INFORMATION TECHNOLOGY IN
LIC in partial fulfillment of requirement for the completion of Bachelor in
Business Administration (BBA IIFSB) course as prescribed by the Maharshi
Dayanand University, Rohtak, (HARYANA).

This project report is the record of authentic work carried out by him/her during
the period from _____ to ____. He / She has worked under my guidance.

(Signature)
Mrs. Vineeta Agarwal
Assistant Professor, BBA Department
Project Guide (Internal)
Date:
Counter signed by
(Signature)
Mr. Ravi Bakshi
Department Coordinator (BBA Department)
Date:

TABLE OF CONTENT
S.NO PARTICULARS PAGE NO.

1 Introduction to the study

2 Company Profile

3 Research Methodology

4 Data Analysis & Interpretation

5 Findings, Conclusion and Suggestions

6 Bibliography

7 Annexure
 CHAPTER – 1
INTRODUCTION TO THE
TOPIC
 ROLE OF INFORMATION TECHNOLOGY IN INSURANCE

INTRODUCTION

The rapid innovation in the field of information and communication technology has
posed serious challenges for the insurance industry in India. The use and application of the
information technology in wide variety of insurer's operations has now become strategic in the
sense that it has direct impact on the productivity of resources and a sweepening impact on
reducing the cost of various activities.

With arrival of private insurance players, the competition has become more intense and
an importance

nt role is being played by the insurance sector. Even though the use of information
technology is not new to the insurance sector, yet it may find tight compartmentalization
regarding the use of information technology in various departments of the insurance companies
including the major players since last 50 years. The most visible of these departments are
accounting, policy issue and servicing, claim processing, sales management etc. The innovation
in information technology can be effectively utilized in the following areas.

Therefore the imperative for all the insurers, especially LIC and GIC is to build up
efficient interface between the various departments and segments. This would reduce the paper
work, improve efficiency of service and provide competitive advantage to the insurance
companies.
SETUP:

Generally the insurance organizations have three tier set-up - operating office (BO/DO),
controlling offices (RO/DO) & central office (HO). The organization & responsibilities of the IT
department & its sub-departments is more or less in the hierarchical order of the various offices.
The IT department at HO is responsible to the chairman/CEO of the organization for
implementing of IT plan. The department is responsible for procuring new technologies,
conducting training & preparing to the CO. the head of the IT department may have the
following managers with their respective tasks:

Technology manager

o Evaluation and acquisition of new technologies in hardware, software,

networking and packaged solution

o Recruitment and supervision of system and network

engineers Conducting of various training programmes.

Network Manager

 Network Administration (Including WAN)

 User administration, system security-mail etc.

 Controlling and supervision of network administrators.

FUNCTIONS

 The IT department in an insurance company performs the following functions:

 Provision for hardware & software resources

 Adoption of latest technology for competitive advantage.

 Training of employees- at operating, head & controlling offices on office automation.

 Advise the top management on Business Process Re-engineering

(BPR). Develop, maintain & implement insurance related application.

 Maintenance of networks
TECHNOLOGY FOR INSURANCE

1. Database Management System:

The principles of tracking and measuring responses can pay off the insurance industry.
To find more clients, insurer needs to record many factors including: lapsation, cash value,
premium and competition. But the need to record and study the characteristic of persistency- the
length of time insurer retain policies, customers and agent is most important for insurance
companies.

In order to find out profitable combination of households or clients, products and agents,
a database with five to ten years history of immense importance. Such historical retention was
prohibitively expensive in the past. But clear advantages of new PC (personal computer) and
RISC (Reduced Instruction Set Computing) technology gives companies power to keep tens of
millions of policies on a device with thousands of bytes of data per policy / client/agent.
Analyzing a 10- year database is cost effective. Reviewing the database provides information on
how many clients have actually migrated not just how many policies have lapsed or surrendered.
Using database technology companies can get a comprehensive, performance, loyalty, and lost
opportunity.

2. Group Linking Software:

Group linking software enables sharing of information and particularly suits document
heavy insurance business. Tracking of policy application shows how information that is input
and accessed from a number of locations can increased efficiency.

An application of coverage is entered into the groupware system from a forms generation
packages. Key fields in the form are already linked to this software allowing a user to click on
the field and view information regarding that area e.g. cost of coverage for similar risk. The user
clicks again and taps into research information regarding such risk, underwriting guideline or
other documentation. If underwriting guidelines have been updated to changes are highlighted in
red and mark with a start.
 User from other locations can view any information as soon as it is added to the file. As
each user completes work on the file it is moved to the next station. The basic promise behind
the groupware is to allow an unlimited number of users to collaborate on a project at any time,
in real time, and to track the location and progress of the project. The ability to replicate
information and to synchronies database or applications no matter where you are in the world is
what made group linking software are lotus, exchange, first class.

4. Mapping:

Mapping technology can be used by insurers to meet different needs, such identifying
loss prone areas or geographic claim analysis. It helps the insurer to analyze the extent of its
network i.e. the insurer can determine whether it has too many or too few agency force in
particular area. Mapping is very convenient way to layer disparate information from various
databases to create pictures.

Maps can illustrate how many buildings are located in flood plain, or whether to
buildings covered by the same insurer's fire policies are close by each other and thus present
potential double loss if fire break out in one of them.

6. Call Centre Technology:

Good consumer service is a crucial element in gaining, maintaining and retaining

profitable customer. Call Centre concept based on interactive voice response services (IVRS) is
gaining importance in this aspect. Employees based the primitive concept of call centre on an
enquiry system providing information services to customer through telephone line answers. The
totally automated computerized exchange but lacks in flexibility i.e. only predefined queries are
serviced.
7. Video Linking:

A video linking facility between two remote units of an insurance company and between
an insurer and broker allows underwriters at one place and brokers at other unit to discuss risk
inherent in a proposal face to face.

8. Intranet, Extranet and Internet:

Intranet is the network connecting different offices of the same business to permit the
internal data within the business. Offices of the same business to permit the internal data within
the business. Extranet is a network allowing the business to communicate with business partners
like suppliers, vendors, banners, regulations etc. on the electronic channel. Internet is a global
network of many computer networks. Any user, who would like to exchange some information
with other user at a remote location, can log into the computer of Internet, provider via modem
or an Internet access CPU (IAC). The Internet and online service providers are providing
opportunities to create new forums that can be utilized by everyone worldwide. Insurers can
browse through many useful sites an Internet.
IT APPLICATION IN FUNCTIONAL AREAS:

Even though the information technology has wide application in all the spheres of the
insurance business, yet following are the most important ones in respective functional Ares.

MARKETING

The scope for use of information technology in marketing function is tremendous. It may
start from the consumer acquaintance to an insurance product to claim settlement or further
selling of new product or developing consumer for the product.

Information technology can be integrated with almost all the p’s of marketing. It may
help in formation and implementation of various marketing strategies including pricing,
promotion and customization strategies. Some of these areas are discussed below.

Consumer awareness:

The use of information technology may be path breaking for the insurance companies
since conventionally the awareness of insurance products in India is low. With the use of
Internet the information about the products and pricing policies can be made available to the
public in few seconds and much transparency in operation can be established. There are
numerous web sites available which can help the prospective customer to compare the insurance
products of various issuers and decide the product suited to his needs. Also, the information
about the new products changes in the existing ones and of course, the information about various
discounts and incentives can be provided at a much faster rate and lower cost.
Customer Services:

In insurance being a service needs high concerns in terms of services. Customer service
requires maximum attention and should span the entire gamut of activities in the purchase of the
products i.e. right from the dissemination of information, documentation to policy administration
and claim settlement. The service quality standards on the new private insurance players have a
threat to the then giants viz.LIC and GIC. The investment in the personnel and knowledge
systems has helped private players companies build significant demine expertise.

FINANCE:

Information technology can be effectively used for internal management viz. Accounting
treasury management, financial performance reporting etc. and as well as in resource
mobilization, portfolio management, investment planning etc.

HUMAN RESOURCE MANAGEMENT:

Application of IT in Human Resource Management is obvious. It can be effectively

utilized in (1) recruitment and selection, (2) training, (3) performance appraisal, (4) promotions,
transfers and dismissals, (5) valuations etc.

RESEARCH AND DEVELOPMENT:

R&D has been made an easy task with increasing use of IT. Surveys and research on
market potential, analysis of markets, tracking with international norms and developments are
the profound areas of IT applications.

The various applications of information technology in life and non- life insurance companies
broke into identifiable area.
 CHAPTER-2
COMPANY PROFILE
“LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956, by an Act of

Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the

Government of India. The then Finance Minister, Shri C.D. Deshmukh, while piloting the bill,

outlined the objectives of LIC thus to conduct the business with the utmost economy, and a spirit

of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to

invest the funds for obtaining maximum yield for the' policy holders consistent with safety of the

capital; to render prompt and efficient service to policy holders, thereby making insurance

widely popular. Since nationalization, LIC has built up a vast network of 2,048 branches, 100

divisions and 7 zonal offices spread over the country. The Life Insurance Corporation of India

also' transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is

associated with joint ventures abroad in the field of insurance, namely, Ken-India ,Assurance

Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and

Life Insurance Corporation (International) E.C. Bahrain. The Corporation has registered a joint

venture company in 26th December, 2000 in Katmandu, Nepal by the name of Life Insurance

Corporation (Nepal) Limited in collaboration with Vishal Group Limited, a local industrial

Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001

to tap the African insurance market.

General Insurance:

General insurance business in the country was nationalized with effect from 1st January, 1973 by

the General Insurance Business (Nationalization) Act, 1972. More than 100 non-life insurance

companies including branches of foreign companies operating within viz., the National

Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance

Company Ltd., and The United India Insurance Company Ltd. with head offices at Calcutta,

Bombay, New Delhi and Madras, respectively. General Insurance Corporation (GIC) which was

the holding company of the four public sector general insurance companies has since been

delinked from the later and has been approved as the "Indian Reinsurer" since 3rd November

2000. The share capital of GIC and that of the four companies are held by the Government of

India. All the five entities are Government companies registered under the Companies Act, 1956.

The general insurance business has grown in spread and volume after nationalization. The four

companies have 2699 branch offices, 1360 divisional offices and 92 regional offices spread all

over the country. GIC and its subsidiaries have representation either directly through branches or

agencies in 16 countries and through associate locally incorporated subsidiary companies in 14

other countries. A wholly- owned subsidiary company of GIC, i.e. Indian International Pvt. Ltd.

is operating in Singapore and there is a joint venture company, viz. Ken-India Assurance Ltd. in

Kenya. A new wholly owned subsidiary called New India International Ltd., UK has also been

registered.
PRODUCTS OF LIC

Whole Life with Profits Plan – 002

Features:

This plan is mainly devised to create an estate for the heirs of the policyholder as the plan

basically provides for payment of sum assured plus bonuses on the death of the policyholder.

However, considering the increased longevity of the Indian population, the Corporation has

amended the above provision, thereby proving for payment of sum assured plus bonuses in the

form of maturity claim on completion of age 80 years or on expiry of term of 40 years from date

of commencement of the policy whichever is later.

The premiums under the policy are payable up to age 80 years of the policyholder or for a term

of 35 years whichever is later. If the payment of premium ceases after 3 years, a paid-up policy

for such reduced sum assured will be automatically secured provided the reduced sum assured

exclusive of any attached bonus is not less than Rs.250/-. Such reduced paid-up policy is not

entitled to participate in the bonus declared thereafter but the bonuses already declared on the

policy will remain attach, provided the policy is converted in to a paid-up policy after the

premiums are paid for 5 years.

Suitable For:

This policy is suitable for people of all ages who wish to protect their families from financial

crises that may occur owing to the policyholder's premature death.

BENEFITS

SURVIVAL BENEFIT:

Sum assured plus accrued bonuses and the terminal bonuses, if any; on the policyholder attaining

age 80 years or on expiry of term of 40 years from the date of commencement of the policy

whichever is later.

DEATH BENEFIT:

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the

policyholder are paid to his/her nominees/heirs.

LIMITED PAYMENT WHOLE LIFE - PLAN 005 (WITH PROFITS)

Features:

This is the best form of life assurance for family provision since it enables the Life Assured to

pay all the premiums during the ordinarily vigorous and most productive years of life. He need

not pay any premium in the later stages of life if and when his conditions might become adverse.

With Profits Limited Payments Policies do not cease to participate in profits after completion of

the premium paying period but continue to share in the periodical Bonus Distribution until the

death of the Life Assured.

The Without-Profit option is available under Table no. 3. If the policyholder pays at least 3

years' premiums and then discontinues paying any more premiums, a reduced paid-up assurance

policy comes into force. Such a reduced paid-up Policy will not be entitled to participate in the

profits declared. Thereafter, but such Bonus as has already been declared on the Policy will

remain attached thereto. The premium paying term under this plan is five years minimum and 55

years maximum.

BENEFITS

Survival benefits

If the Life Assured survives the premium paying period and the policy continues in full force,

provided all premiums have been paid, but no further premiums are required to be paid.

Death Benefits:
Plan Parameters:

Minimum Maximum

Entry age 12 (nearer birthday) 60

Sum assured (Rs.) 50000 NO LIMIT

Term (years) 5 55 (Max. Premo ceasing

age is 70)

Mode of Payment Maximum premium paying period Policy loan

available

Yearly, half yearly 80 yrs. of age or 40 yrs.of yes

,quarterly, monthly premium paying term from the

, salary saving date of commencement whichever

Scheme is later.

ENDOWMENT WITH PROFIT PLAN - 014

FEATURES:

 Moderate Premiums

 High bonus
 High liquidity

 Savings oriented

This policy not only makes provisions for the family of the Life Assured in event of his early

death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide

an annuity during the remainder of his life or in any other way considered suitable at that time.

Premiums are usually payable for the selected term of years or until death if it occurs during the

term period.

Suitable For:

Being an endowment assurance policy, this plan is apt for people of all ages and social groups

who wish to protect their families from a financial setback that may occur owing to their demise.

The amount assured if not paid by reason of his death earlier will payable at the end of the

endowment term where it can be invested in an annuity provision for the rest of the

policyholder's life or in any other way he may think most suitable at that time.

BENEFITS

Disability Benefit:

In case policy holder becomes totally and permanently disabled due to an accident before
reaching the age of 70 and the policy is in full force, he will not be required to pay further

premiums, (the Disability Benefit is available in respect of the first Rs.20000 sum assured on

anyone life) and the policy will continue to be in force.

Accident Benefit:

By paying a small extra premium of Rs. l per Rs. 1000/- sum assured per year he or his family

are entitled to the following benefits on death or permanent disability caused by accident. Even

students above the age of 18 years can avail of this benefit.

Premium Stoppage:

If payment of premiums ceases after at least THREE years' premiums have been paid , a free

paid-up policy for a reduced sum assured will be automatically secured provided the reduced

sum assured, exclusive of any attached bonus, is not less than Rs. 250/-. The reduced sum

assured will become payable on the event as stipulated in the policy.

Bonus:

Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, but

only if it is a 'with profits' policy. Every year the Life Insurance Corporation distributes its

surplus among policyholder to 'with profits' polices in the form of bonuses. Substantial bonuses

have been declared in the past after each valuation of policy liabilities.
BENEFITS

Survival benefits:

Payment of full Sum' Assured + Vested Bonus + Final Additional bonus, if any.

Death Benefits:

Payment of full sum assured + Vested Bonus.

Plan Parameters:

Minimum Maximum

Entry Age (years) 12 65

Sum Assured (Rs.) 50000 no limit

Term (years) 5 55

Mode Of Payment Max Maturity Age Policy loan available

Monthly, Quarterly, 75 years yes

Half Yearly, Yearly,

Salary Saving Scheme.

ANMOL JEEVAN - I (WITHOUT PROFITS)

BENEFITS

On Death during the Term of the Policy: Sum Assured

On Maturity : Nil

RESTRICTIONS

(A) Minimum age at entry : 18 years (completed)

(B) Maximum age at entry : 55 years (nearer birthday)

(C) Maximum age at maturity : 65 years

(D) Minimum Term : 5 years

(E) Maximum Term : 25 years

(F) Minimum Sum Assured : Rs. Five Lakh

(G) Maximum Sum Assured : Rs. Three Crore (Inclusive of all

term Assurance plans)

Note: The policy would be issued in multiples of Rs. one lakh for Sum Assured above Rs. five

lakh.
(H) Mode of Premium Payment: Yearly, Half- Yearly and Single premium.

(G) Rebates:

 Sum Assured Rebate: NIL in case of regular premium policies and Re. l Sum

Assured for policies of Rs.25 lakh and above in case of single premium policies.

 Mode Rebate : 1% of Annual premium for yearly mode and nil for Half-Yearly

mode.

UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:

The plan is available to Standard and Sub-standard lives (upto Class VI EMR). This plan is also

available to female lives (category I and II lives only) and to physically handicapped persons

subject to certain conditions. Standard age proof will have to be submitted along with the

Proposal Form.

PAID-UP AND SURRENDER VALUE:

 The policy will not acquire any paid-up value.

 No Surrender Value will be available under this plan.

GRACE PERIOD FOR NON-FORFEITURE PROVISIONS:

A grace period of 15 days will be allowed for payment of yearly or half-yearly premiums. If

death occurs within this period and before the payment of the premium then due, the policy will

still be valid and the Sum Assured paid after deduction of the said premium as also unpaid

premiums falling due before the next policy anniversary of the Policy. If the premium is not paid

before the expiry of the days of grace, the Policy gets lapsed.

REVIVAL

If the Policy has lapsed, it may be revived during the life time of the Life Assured, but before the

date of expiry of policy term, on submission of proof of continued insurability to the satisfaction

of the Corporation and the payment of all the arrears of premium together with interest at such

rate as may be prevailing at the time of the payment. The corporation reserves the right to accept

or decline the revival of discontinued policy. The revival of the discontinued policy shall take

effect only after the same is approved by the Corporation and is specifically communicated to

the Life Assured. The cost of the Medical reports, including Special Reports, if any, required for

the purposes of revival of the policy, should be borne by the Life Assured.

PAYMENT OF CLAIMS

No Claims concession will be applicable to this Policy.

BACK-DATING INTEREST

The policy can be back dated within the financial year. No dating back interest shall be charged.
BENEFITS

Survival benefits:

If one or both the lives survive to the maturity date, the sum assured, along with the accumulated

bonus, is payable.

Death Benefits:

In case either of the couple dies during the policy's term, two things happen. One, LIC pays to

the surviving spouse the full sum assured. And, two, the policy continues on the life of the

surviving partner without him/her having to pay any further premiums, i.e. the life cover on the

survivor continues free of cost.

The sum assured is again be payable on the death of the other partner in case both the husband

and wife were to die during the term of the policy. Vested bonus would also be paid along with

the sum assured on the second death.

NEW INSURANCE SCHEMES

Universal Health Insurance Scheme

The Universal Health Insurance policy is available to groups of 100 or more families. The policy

provides for reimbursement of medical expenses upto Rs.30000/- towards hospitalization floated
amongst the members of the family, death cover due to an accident for Rs.25000 to the earning

head of the family and compensation due to loss of earning head of the family @ Rs.50/- per day

upto a maximum of 15 days, after a waiting period of three days, when the earning head of the

family is hospitalized. The premium under the policy is Rs.1! - Per day (Le. Rs.365/-per annum)

for an individual, Rs. 1.50 per day for a family of five limited to spouse and children (i.e. Rs.548

per annum), and Rs.2/- per day (i.e. Rs. 730 per annum) for covering dependent parents within

the overall family size of seven. A subsidy of Rs. 100 per year towards annual premium for

"Below Poverty Life" families is also provided under the Scheme.

For purpose of this policy HOSPITAL means:

 Any Hospital/Nursing home registered with the local authorities and under the supervision of

a registered and qualified Medical practitioner.

 Hospital, Nursing Home runs by Government.

 Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed schedule of

charges.

 Hospitalization should be for a minimum period of 24 hours.

However, this time limit is not applied to some specific treatments and also where due to

technological advancement hospitalization for 24 hours may not be required.

Main Exclusions:

 All pre-existing diseases.

 Corrective, cosmetic or aesthetic dental surgery or treatment.

 Cost of spectacles, contact lens and hearing aid.

 Primarily diagnostic expenses not related to sickness/injury.

 Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.

Age Limitations:

This policy covers people between the age of 3 months to 65 years.

Floater Basis:

The benefit of family' will operate on floater basis i.e. the total reimbursement of Rs. 30,000/-

can be availed of individually or collectively by members of the family.

Insurance plans:

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

different from that of the others. LIC’s Insurance Plans are a policy that talk to you individually

and gives the most suitable options that can fit ones’ requirement.

Jeevan Anurag Komal Jeevan

CDA Endowment Vesting At 21 Marriage Endowment Or

CDA Endowment Vesting At 18 Educational Annuity Plan

Jeevan Kishore Jeevan Chhaya

Child Career Plan Child Future Plan

Jeevan Aadhar

Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment

Jeevan Mitra(Double Cover Endowment Plan)

Jeevan Mitra(Triple Cover Endowment Plan)

Jeevan Anand

New Janaraksha Plan

Jeevan Amrit

Jeevan Shree-I

Jeevan Pramukh

The Money Back Policy-20 Years

The Money Back Policy-25 Years

Jeevan Surabhi-15 Years

Jeevan Surabhi-20 Years

Jeevan Surabhi-25 Years

Jeevan Rekha (closed for sale)

Bima Bachat

Jeevan Bharati

The Whole Life Policy

The Whole Life Policy- Limited Payment

The Whole Life Policy- Single Premium

Jeevan Rekha (closed for sale)

Jeevan Anand

Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy

Anmol Jeevan-I

Amulya Jeevan
 Jeevan Saathi Mortgage Redemption

Unit plans:

Unit plans are investment plans for those who realize the worth of hard-earned money. These
plans help you see your savings yield rich benefits and help you save tax even if you don’t
have consistent income.

 Jeevan plus

 Future plus

 Bima plus

 Market plus

 Money plus

 Profit plus
 CHAPTER-4

RESEARCH METHODOLOGY
RESEARCH DESIGN

PURPOSE OF STUDY

The main reason to select "MODERN TECHNOLOGY THAT IMPACT INSURANCE

INDUSTRY" is to understand the need of IT in insurance business which makes the business
more safe and sound and to study the development of IT in the insurance industry.

OBJECTIVE OF STUDY

 Understanding & studying the various uses of information technology in different fields
of insurance sector.
 To make in depth study regarding current status of IT in insurance.
 To study the various changes brought in by IT in the insurance sector through its advent.
 Understanding the importance & purpose of IT
 Learning the various benefits provided by IT to its employees, organization as well as the
individual.
 RESEARCH METHODOLOGY

DATA COLLECTION

The input for the project has been collected keeping in mind the objectives of the project and
accordingly relevant information has been found. The methodology used is a descriptive method
of the research.

PRIMARY DATA

The data regarding " INFORMATION TECHNOLOGY THAT IMPACT INSURANCE

INDUSTRY " was collected through primary data. Semi-structured interviews were conducted
with ‘Rajesh Bedichandani’ the development manager of the "LIFE INSURANCE
CORPORATION OF INDIA" This was done to understand the current practices and the style of
functioning Information Technology in Insurance Company.

SECONDARY DATA

The data had been collected by reading various books of IT. The data regarding Information
Technology Introduction, recent trends was collected from their official website on the
recommendation of the personal interview.
 LIMITATION

 There are no specific books for IT in insurance; it is covered as a small topic in the books

of insurance.

 IT is very vast topic to cover.

 Less information was available on the internet especially in IT use in private insurance

industry.
 CHAPTER-5
DATA ANALYSIS AND INTERPRETATION
Q1: Does the use of IT reduce the cost?

Cost Reduction No. of % of

respondents respondents
Yes 65 65%
No 35 35%

Cost reduction

yes
no

INTERPRATATION:

This graph shows that 65% of the employees think that use of IT in
INSURANCE reduces the overall cost of the insurance sector while the
35% of the employees think that use of IT increases the cost of overall
insurance sector .
Q2: Does the use of IT saves the time of employees?

Time Saving No. of respondents % of respondents

Yes 80 80%
No 20 20%

Time saving

Yes
No

INTERPRATATION:

This table shows that the use of IT in INSURANCE saves the time of
employee as well as employees.80% of employees are in the favour of
reduces the time but 20% of employees are thinks that it does not save the
time.
Q3: Does IT breaks the Time and Location constraint?

Time and location No of respondents % of respondents

constraint
Yes 75 75%
No 25 25%

Time and location constraint

yes
no

INTERPRATATION:

This graph shows that the IT breaks the time and location constraints.75%
employees are said that with the help of IT we can save the time.
Q4: Do you think that providing sophisiticate services become easier with
the help of IT?

Providing sophisticate No. of respondents % of respondents

Services
Yes 90 90%
No 10 10%

Providing sophisticate services

yes
no

INTERPRATATION:

This graph show that it helped the bank to provide sophisticated

services or not. 90% of the respondents says they provide sophisticated
services while 10% of the respondents says they do not help to provide
the sophisticated services.
Q5: Do you think that the use of IT is helpful in establishing trust of
customers?

Establish Trust No. of respondents % of respondents

Yes 40 40%
No 60 60%

establish Trust

Yes
No

INTERPRATATION:

This graph says about the IT has establish trust among the people or not.
Only the 40% of respondents says that IT has able to establish the trust
while 60% of the respondents says that IT had not able to establish the
trust.
 CHAPTER - 6
FINDINGS,CONCLUSIO
N AND SUGGESTIONS
 CONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies

associated with multinational in the Insurance Sector to give befitting competition to

the established behemoth LIC in public sector, we come at the conclusion that :

1) There is very tough competition among the private insurance companies

on the level of new trend of advertising to lull a major part of Customers.

2) LIC is not left behind in the present race of advertisement.

3) The entry of the Pvt. Players in the Insurance Sector has expanded the

product segment to meet the different level of the requirement of the

customers. It has brought about greater choice to the customers.

4) Private insurers have restricted reach to the customers.

5) LIC has vast market and very firm grip on its traditional customers and

monopoly of life insurance products.

6) Bank assurance - that allows life insurers to leverage on the risk product

through bank network, was adopted by private players. But LIC was also

not left behind as picking up majority stake in the corporation Bank and

large equity stake in the Oriental Bank of Commerce.

IRDA is also playing very comprehensive role by regulating norms mandating to

private players in this sector, that increases the confidence level of the customers to

the private players.

CONCLUSIONS GOT BY THE CONSUMER SURVEY ANALYSIS

1) Now days also Insurance is most popular as more plain protection against

death and people are unaware about the other aspects of insurance.

2) According to current scenario life and mater Insurance are the mast

popular ones followed by fire Insurance.

3) Majority of people consider the Insurance premium paid by them as

reasonable.

4) Only few counted people are unaware about the entry of private players

into. The insurance industry and a very high majority of people support

their entry.

5) By the entry of private players. Consumers are expecting the premium to

down which would be the biggest blessing.

RECOMMENDATIONS

In the modernized well advanced hi-tech approach to the customer every possible facilities and

effort to build up the confidence of the rising policy holders towards. Insurance companies, to

complete one another nothing is left to recommend. But some recommendations that are

intensely felt and highly required for insures to sustain in the market. These are as follows:

a) More and more transparency should be ascertained between insurers and policy holders.

b) Particularly, in the emerging boom in the insurance company, every insurance company

should be customer centered, and well versed in the handling of problem and grievances

of the policy holders.

c) Each and Every product launched by the Insurance company should be in favour of

increasing need of policy holders.

IRDA should be more and more responsible to the insurance sector by determining some

standard. It should be mandatory to every insurers to make more and more responsible and

responsive to the policy holders so that comprehensive understanding may be developed among

policy holders. It may be beneficial on both sides.

 Chapter- 7

Bibliography
BOOKS:

INSURANCE AND RISK MANAGEMENT

- P.K. GUPTA

CLAM SATTLEMENT VOL-V (ICFAI)

INSURANCE CUSTOMER SERVICE

GROUP AND HEALTH INSURANCE(ICFAI)

LIFE INSURANCE VOL-I

WEBSITE:

www.licindia.com

SEARCH ENGINE:

www.google.com

www.altavista.com
Chapter-8
ANNEXURE
Questionnaire

Name - _____________________________________

Occupation-__________________________________

Contact Detail -_______________________________

Q1: Does the use of IT reduce the cost?

a. Yes
b. No
Q2: Does the use of IT saves the time of employees?

a. Yes
b. No
Q3: Does IT breaks the Time and Location constraint?

a. Yes
b. no
Q4: Do you think that providing sophisiticate services become easier with the help
of IT?

a. Yes
b. No
Q5: Do you think that the use of IT is helpful in establishing trust of customers?

a. Yes
b. No