A

COMPREHENSIVE PROJECT REPORT

ON

“A comparative study on customer perception towards

LIC OF INDIA

In view of competition by private companies”

Submitted to

Late Smt. Shardaben Ghanshyambhai Patel Institute of Management

Studies, DHARMAJ.

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION

In

GUJRAT TECHNOLOGICAL UNIVERSITY

UNDER THE GUIDENCE OF

FACULTY GUIDE

Ms. Shweta Patel

(Asst. Professor)

SUBMITTED BY

Nirmita B. Patel

Batch: 2012-14, Enrolment No.: 20

MBA SEMESTER IV

Late Smt. Shardaben Ghanshyambhai Patel Institute of Management Studies

DHARMAJ.

MBA PROGRAMME

Year: 2013-14

Affiliated to Gujarat Technological University

Ahmedabad

I

DECLARATIONDECLARATION

I, Nirmita B. Patel, hereby declare that the report for Comprehensive Project entitled

““A comparative study on customer perception towards LIC OF INDIA In view

of competition by private companies” is a result of our own work and our

indebtedness to other work publications, references, if any, have been duly

acknowledged.

Place: Nirmita B. Patel

Date:

II

PREFACEPREFACE

In the fast changing scenario of the corporate world, practical knowledge of industrial

environment and business practices is becoming necessary day by day to compete

with the cut-throat competition. So with the theoretical knowledge the practical

knowledge of the industry is also important to know about the prevailing business

environment. Business school offers training for all business aspects. So from this

angle our Gujarat Technological University has granted M.B.A. program. It gives us

opportunity to relate theoretical knowledge with real market situation. It also helps to

improve our analytical skill, communication skill and knowledge.

I have prepared my project on “A comparative study on customer perception

towards LIC OF INDIA In view of competition by selected private companies”. This

project is totally based on secondary data as well as primary data. We gathered

information for the project by practical survey and form the internet.

In this project I have tried to analyze the market situation of the Life Insurance

Corporation of India with the comparison of private insurance companies such as

HDFC Standard Life Insurance Co. Ltd., Max New York Life Insurance Co. Ltd., and

ICICI-Prudential Life Insurance Co. Ltd. and other big players of the industry.

III

ACKNOWLEDGEMENT

The Project work is not a result of any individual but of many whom contributed

directly or indirectly towards it. Probably, I could never complete this task so well

without the guidance of many people. So, I express my deep sense of gratitude to all

the people who had helped me during this Project.

I would like to express our profound gratitude to all those who have been

instrumental in the preparation of this report which has been prepared in partial

fulfilment of subject “Comprehensive Project” in the Semester IV of an MBA

programme.

First I avail this opportunity to convey my sincere thanks to our Director, Dr. M. R.

Brahmchari, I would like to thank my project guide. I would like to thank my project

guide Mrs. Shveta Patel, for his continuous guidance and supervision and support

during the training period. I would also like to all the Faculty Members who have

spared sometime and helped me out to carry on my project work successfully at the

best level.

Last but not the least I am sincerely thankful to my Parents for giving me the support,

care and concerns. And I am also thankful to God for his grace on me.

Nirmita B. Patel

IV

TABLE OF CONTENT

Chapter

No.

Particulars Page

No.

Declaration I

Certificate II

Preface III

Acknowledgement IV

Table of Content V

Executive Summary VII

PART 1 – GENERAL STUDY 1

1. INTRODUCTION & IDENTIFICATION OF PROBLEM 2

1.1 List of Life Insurers 4

1.2 Scope of the study 5

1.3 Significance of the study 5

1.4 Objectives of the study 6

1.5 Review of Literature 6

2. INSURANCE INDUSTRY IN INDIA 9

2.1 Historical Perspective 10

2.2 Insurance Regulatory Development Authority of India 10

2.3 Changing perception of Indian customers 11

2.4 Changing face of Indian insurance industry 13

2.5 International Comparison of Life Insurance Penetration 17

2.6 Market Share of Insurance Industry in Last few years 18

2.7 Number of Life Insurance Offices- Company wise 19

2.8 New Policies issued: Life Insurers 20

2.9 Total Life Insurance Premium 21

2.10 Channel-wise New business performance Individual

Business

22

2.11 Channel-wise New business performance Group Business 24

2.12 Public grievances 25

3 COMPANY PROFILE OF LIFE INSURANCE CORPORATION OF INIDA 28

3.1 Company Profile 29

3.2 Products and Services of LIC 32

V

3.3 Insurance plans: LIC Product portfolio 34

3.4 SWOT analysis of LIC of India 37

3.5 Departmental details 38

PART II PRIMARY STUDY

4 RESEARCH METHODOLOGY 42

4.1 Introduction 43

4.2 Statement of the Problem: 44

4.3 Formulation of Hypothesis 44

4.4 Data Processing and Analysis 44

5 DATA ANALYSIS AND INTERPRETATION 45

6 RESULTS AND FINDINGS 67

7 LIMITATIONS OF THE STUDY 67

8 CONCLUSION AND SUGGESTIONS 69

References

Appendix

ABSTRACT/ EXECUTIVE SUMMARY

VI

Customer satisfaction is the true differentiator for the success of any business and is

more so in insurance where the products are perceived to be intangible. Referring to

the reviews it has been found that growth rate as well as the market share of LIC is

constantly decreasing in comparison to the private companies like HDFC Standard

Life Insurance Co. Ltd., Max New York Life Insurance Co. Ltd., ICICI-Prudential Life

Insurance Co. Ltd., Birla Sun Life Insurance Co. Ltd., etc., so to improve on the

correctional areas, the four main aspects i.e. awareness level, service quality,

problems faced and rationale behind investment has to be known.

High quality products with quality support services both in terms of international

standards and competitiveness have entered into our country. Customer satisfaction

has emerged as the key differentiator and defining attribute. The study is very much

significant because it brings out the differences in various parameters like awareness

service quality, problems faced and rationale behind investment between the

products of LIC and private sector companies and these are the main attributes

which build up the customer perception and loyalty towards a company. The study is

significant also because it will help LIC to create a positive impact on its customers

by working on its lacking qualities.

VII