A Project Report Submitted in partial fulfilment of the Degree of B.

com
Honours in accounting &Finance under the University of Calcutta

Title of the project

Life Insurance Corporation (LIC)

Submitted By

Name : Prabal Koley

C.U. Roll No. : 171046-21-0328

Registration No. : 046-1111-0284-17

College Roll No. : 472

Collage : Prafulla Chandra collage

E-mail ID :

Mobile No. : 7686076603

Supervised by

Dr. Aindrila Biswas

……………………………………………
Month & Year of submission October,2020

1
 ACKNOWLEDGEMENT
If is a great pleasure to present this project on

Life Insurance Corporation of India(LIC)

I take this opportunity to thanks our respected Principal Dr.

Ratnakar Pani for giving me an opportunity to work on this field.

I am very thankful to my supervisor Dr. Aindrila Biswas for

his full support in completing the project work.

Finally, I gratefully acknowledge the support of my family /friends

and would also like to thank the residents of my locality whom I
have visited during my survey work who had given me support
and co-operated with me to carry out the research work and help
me in the project work by filling up the questionnaire / report.

Annexure –I

SUPERVISOR’S CERTIFICATE
2
This is to certify that Mr. Suman khanra a student of B.com Honors
Accounting in Finance of Prafulla Chandra College under the University
of Calcutta has worked under my supervision and guidance for project work
and prepared this project with the title LIFE INSURANCE
CORPORATION OF INDIA which she is submitting in her genuine and
original work to the best of my knowledge.

Place: Gariahat Signature:

Date: Name: Dr. Aindrila Biswas

Designation: Faculty of Commerce

Name of the Collage: Prafulla Chandra Collage

Annexure -II
STUDENT’S DECLARATION

I hear by declare that the project work the title Life Insurance Corporation
of India Submitted by me for the partial fulfillment of the degree of B.Com Honours
in accounting & finance under the University Of Calcutta is my original work and has not
been submitted earlier to any other University for the fulfillment of the requirement for
any course of study.

I also declare that no chapter of this manuscript in whole or in part has incorporated in
this report from any earlier work done by others or by me. However, extracts of any

3
 literature which has been used for this report has been duly acknowledged providing
details of such literature in the references.

Name: Prabal Koley

Address: 365/B Grand Trunk Road

Howrah: 711103

Registration No: 046-1111-0284-17

University Roll No: 171046-21-0382

College Roll No: 472

Ph. No: 768607660

Signature:

TABLE OF CONTENTS
CHAPTER TOPICS PAGE
NO.
CHAPTER 1 1.1 Back ground of study 5
Introduction 1.2 Needs of the study 5
1.3 Literature review 6
1.4 Objective of the study 7
1.5 Research methodology 7
1.6 Limitation of study 8
1.6 Chapter planning
8
CHAPTER 2 2.1 CONCEPT: 9-10
CONCEPTUAL
FRAMEWORK
2.2 DIFFERENT TYPES OF INSURANCE PLAN PROVIDES BY
/NATIONAL & 11-12
INTERNATIONAL LIC INDIA:
SCENARIO

2.3 THE NATIONAL /INTERNATIONAL SCENARIO: 13

4
CHAPTER 3 COMPANY PROFILE(LICI): 14-15

PRESENTATION OF
3.1 Primary Data Analysis 16-23
DATA ANALYSIS AND
FINDINGS
3.2Secondary data analysis 24-41

CHAPTER 4 CONCLUSION 42

CONCLUSION&
RECOMMENDATIONS 43
RECOMMENDATIO
N

44

BIBLIOGRAPHY

Chapter: 1
INTRODUCTION

1.1 BACKGROUND OF THE STUDY

In India, Insurance has a deep-rooted history. Insurance in various forms has been
mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and
Kautilya (Arthashastra). The fundamental basis of the historical reference to insurance in
these ancient Indian texts is the same i.e. pooling of resources that could be re-distributed
in times of calamities such as fire, floods, epidemics and famine. The early references to
Insurance in these texts have reference to marine trade loans and carriers' contracts.
Insurance in its current form has its history dating back until 1818, when Oriental Life
Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of
European community. In the year 1912, the Life Insurance Companies Act and the
5
Provident Fund Act were passed to regulate the insurance business. The Life Insurance
Companies Act, 1912 made it necessary that the premium-rate tables and periodical
valuations of companies should be certified by an actuary. However, the disparity still
existed as discrimination between Indian and foreign companies. The oldest existing
insurance company in India is the National Insurance Company, which was founded in
1906, and is still in business.

1.2 NEED OF THE STUDY

The study has been made with the intention to analysis the present condition of the life
insurance corporation. Most of the people have savings but they are not aware about
insurance benefits and its various schemes. Main needs of the study are as follows:
I. To increase life insurance inflitration in the country.
II.
III. The national/international scenerio gives a huge knowledge of life Insurance
growth and the current situation of LIC financial position.
IV. To satisfy the needs of more demanding customers.
V. The satisfaction level of the people of rural and urban areas.

1.3 LITERATURE REVIEW

In order to find out the gaps in research, the literature already available pertaining to the
problem is to be reviewed. The literature on life insurance industry in India includes
books, compendia, theses, dissertations, study reports and articles published by
academicians and researchers in different periodicals. The review of this literature gives
an idea to concentrate on the unexplored area and to make the present study more distinct
from other studies. The literature available is presented below:
1. Mishra, K.C. and Simita Mishra (2000) in their article on “Insurance Industry:
Recipe for a Learning Organization” say that like any other industry, insurance
industry in India suffers from one challenge repeatable a hundred times, that is the
constraints of infrastructure.
2. Balasubramanian, T.S. and Gupta, S.P. (2000) in their book on “Insurance
Business Environment” explain at length the global and Indian pictures of Insurance

6
systems. The impact of globalization and also liberalization on Insurance business
environment is also discussed analytically to have a clear understanding of the challenges
faced by the insurance industry.
3. Mitra Debabrata (2000) in the thesis entitled “Employees and the PSU: A Study of
their Relationship with Special reference to Jalpaiguri Division of the Life
Insurance Corporation of India” opines that the State-owned Undertakings provide all
sorts of facilities and amenities to employees along with usual emoluments. But, their
productive rate slow when compared it with the private sector undertakings. In the
Jalpaiguri Division, the employee relationship with the LIC is clearly discussed and some
suggestions are also given in the thesis.

1.4OBJECTIVES OF THE STUDY

Main objectives of the research is to have an analysis of life insurance corporation in
India and to show that how it is performed in recent times. Main objectives of the study
are primarily the following:
I. To understand the importance of Life Insurance in human life.
II. To know the working of LIC (Life Insurance Corporation).
III. To evaluate the operating efficiency of LIC of India.
IV. To measure the performance of LIC of India.
V. To evaluate the growth of LIC during the period of the study.
VI. To evaluate the reason to switch over from lic to other companies.
VII. To identify the satisfication level between rural and urban customers.

1.5 RESEARCH METHODOLOGY

 Type of Research: Analytic research
 Data Collection: Primary and Secondary sources
 Statistical tools: Table Column and Pie chart

7
 I. Primary data is the data which is collected from direct interaction with the target
sources and which is raw in hand and is used for the first time.
II. The present study is a case study using secondary data and primary Data and
information have been extracted from Annual Reports LICI AND IRDAI.
III. I have collected 4 years financial statement of the company under study.
IV. It is also supported by various published journals, literatures of the LIC and
Internet.
V. Tools have been used as per the need and type of the study.
VI. The information so collected has been classified, tabulated and analysed with the
help of Microsoft Excel 2007. As per the nature of the data available the
graphical presentation was also done. Excel is an electronic spreadsheet program
that can be used for storing, organizing and manipulating data. When you look at
the Excel screen (refer to the example on this page) you see a rectangulartable or
grid of rows and columns. The horizontal rows are identified by numbers (1, 2,
3) and the vertical columns with letters of the alphabet (A, B, C). The types of
data that a cell can hold include numbers, text or formulas. Just as in math class,
formulas are used for calculations usually involving data contained in other cells.
Excel and other electronic spreadsheets include a number of built in formulas
used for common tasks known as functions.

1.6 LIMITATIONS OF THE STUDY

As the study has been made with primary and secondary data, there are certain limitaions
of the study to be noticed, the limitations are as follows:
I. Main limitation of the study was
II. inadequate time to the conduct it, which affected the processing and analysing
of the data.
III. The drawback was emphasis on secondary data, as gathering primary data was
not sufficient to do much analysis about the primary data analysis of the
project Of Life Insurance Corporation of India
IV. Sample size of primary data is limited to 30 people only.

8
 V. It is difficult to know if all the respondents gave accurate information; some
respondent tend to give misleading information.
VI. Due to time the researcher covered only a limited period of study i.e. 2013-14
to 2016-17.

1.6 CHAPTER PLANNING

 Chapter 1: Introduction
 Chapter 2: Conceptual framework and national/international scenario
 Chapter 3: Data Analysis, interpretation of data, findings,

 Chapter 4 deals with conclusions and recommendation

9
 Chapter: 2
CONCEPTUAL FRAMEWORK /NATIONAL &
INTERNATIONAL SCENARIO

2.1 CONCEPT:
Insurance in India is the market which covers both the state and private sector
organisations. It is listed in the Constitution of India on the Union list in the Seventh
Schedule meaning it can only be legislated by the central government.
The insurance sector has gone through a number of phases by allowing private companies
to solicit insurance and also allowing foreign direct investment of up to 26% (as of 2015
there have been proposals to extend the FDI up to 49% to strengthen the Insurance
Market even further). However, the largest life-insurance company in India, Life
Insurance Corporation of India is still owned by the government and carries a sovereign
guarantee for all insurance policies issued by it.
Life Insurance is the fastest growing sector in India since 2000 as Government allowed
Private players and FDI up to 26% and recently Cabinet approved a proposal to increase
it to 49%. Life Insurance in India was nationalised by incorporating Life Insurance
Corporation (LIC) in 1956. All private life insurance companies at that time were taken
over by LIC.
In 1993, the Government of India appointed RN Malhotra Committee to lay down a road
map for privatisation of the life insurance sector.
While the committee submitted its report in 1994, it took another six years before the
enabling legislation was passed in the year 2000, legislation amending the Insurance Act
of 1938and legislating the Insurance Regulatory and Development Authority Act of 2000.
The same year the newly appointed v insurance regulator - Insurance Regulatory and
Development Authority IRDA—started issuing licenses to private life insurers.
The Gross Domestic Product (GDP) in India expanded 4.70 percent in the fourth quarter
of 2015 over the same quarter of the previous year. The Ministry of Statistics and
Program Implementation (MOSPI) report GDP Annual Growth Rate in India. GDP

10
Annual Growth Rate in India averaged 5.84 Percent from 1951 until 2013, reaching an all
time high of 11.40 Percent in the first quarter of 2011 and a record low of -5.20 Percent
in the fourth quarter of 1979. In India, the annual growth rate in GDP at factor cost
measures the change in the value of the goods and services produced in India, without
counting government’s involvement. Simply, the GDP value excludes indirect taxes
(VAT) paid to the government and includes the original value of products without
accounting for government subsidies. This page provides – India GDP Annual Growth
Rate – actual values, historical data, forecast, chart, statistics, economic calendar and
news.
The macroeconomic conditions in the country remained challenging and the Indian
economy grew in 2013 at its slowest pace in a decade. Though there is evidence that the
economy. Economic growth is thus likely to continue at modest levels in the near future.
Though inflation moderated, as was projected, creating space for cut in interest rates the
high Current Account Deficit and persisting inflationary pressures acted as obstacles to
aggressive easing of monetary policy. The growth in industry is extremely moderate
posing a threat to job creation and overall growth. Demand in the system is weak with
low levels of consumption, government expenditure and investments. Gross Domestic
Savings have also come down in comparison to last fiscal and of late there is also a swing
in the preference of customers towards physical assets like Gold.

11
] 2.2 DIFFERENT TYPES OF INSURANCE PLAN
PROVIDES BY LIC INDIA:

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

requirements are different form that of others. LIC’s insurance plans are policies that talk
to you individually and give you the most suitable options that can fit your requirements.

ENDOWMENT PLANS
1. LIC’S JEEVAN PRAGATI
2. LIC’S JEEVAN SHIKHAR
3. LIC’S JEEVAN LABH
4. LIC’S SINGLE PREMIUM ENDOWMENT PLAN
5. LIC’S NEW ENDOWMENT PLAN
6. LIC’S NEW JEEVAN ANAND

MONEY BACK PLAN

1. LIC’S NEW MONEY BACK PLAN-20YEARS
2. LIC’S NEW MONEY BACK PLAN-25 YEARS
3. LIC’S NEW BIMA BACHAT
4. LIC’S JEEVAN TARUN

TERM ASSURANCE PLAN

1. LIC’S ANMOL JEEVAN-ii
2. LIC’S AMULYA JEEVAN-ii
3. LIC’S NEW TERM ASSURANCE RIDER-[UIN-512B210V01

12
PENSION PLANS
Pension plans are individual plans that gaze into your future and foresee financial
stability during your old age. The policies are most suited for the senior citizens and for
those who are planning for secure future.
PLANS:
1. JEEVAN AKSHAY-vi
2. LIC’S NEW JEEVAN NIDHI

UNIT PLANS
Unit plan is the investment plan for those who realize the worth of hard earned money.
These plan help you to see your savings yield reach benefits and help you to save tax
even if don’t have consistent income.
PLANS:
1. LIC’S NEW ENDOWMENT PLANS

GROUP SCHEME
It is life insurance protection to groups of people. This scheme is idle for employers,
associations and societies etc. and allows you to enjoy group benefits at really low
costs.
PLANS:
1. LIC’S GROUP CREDIT LIFE INSURANCE
2. LIC’S SINGLE PREMIUM GROUP INSURANCE
3. LIC’S NEW GROUP LEAVE ENCASHMENT PLAN

13
2.3THE NATIONAL /INTERNATIONAL SCENARIO:
The Indian economy in the year 2016-17 continued to represent macroeconomic stability,
It has grown at 7.1% during the year. According to the World Bank Growth in India for
year
2017 and 2018 are projected at 7% and 7.6% respectively. However, IMF has projected
growth in India to be 7.2% and 7.7% for 2017 and 2018 respectively.
The current account deficit rose to 4.8% of gdp from about 4.2% of gdp in the previous
fiscal. Foreign investment inflows were significantly higher at f 1, 40,625 crore compared
to f 49,918 crore in the previous year. Foreign direct investments were lower by 22.10%
while portfolio investments increased by 56.6%.
India’s external debt in rupee term was f 21, 19,600 crore (us$390.05 billion) at
March2017 compared to f 17, 66,600 crore (us$345.50 billion) at March 2016
According to the IMF report “WORLD ECONOMIC OUTLOOK” (WEO, GLOBAL
GROWTH IN 2016 was 3.1%, which is projected to rise to 3.5% in 2017 and further to
3.6% in 2018.Asusual the emerging economies are expected to do better than the
advanced ones with India expected to register the highest growth rates in both 2017 and
2018. In 2016 United States showed a growth of 1.6% while Japan’s economy showed
growth of 1.0% growth in advanced economies was at the level of 1.7% in 2016. Euro
area has shown signs of recovery with a growth of 1.7% in 2016. Emerging markets
showed a growth rate of 4.1% in 2016.
IMF in WEO reports has projected Global growth to be at 3.5% for 2017 and at 3.6% for
2018 and is expected to be driven primarily by Emerging Markets and Developing
Economies (EMDEs).
Today, the LIC had 8 zonal offices, around 113 divisional offices, 2,048 branches and
992 satellite offices and corporate offices; it also has 54customer zones and 25 metro-
area service hubs located in different cities and towns of India. It also has a network of
1172983 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42
Banks for soliciting life insurance business from the public.

14
 Chapter: 3
PRESENTATION OF DATA ANALYSIS AND
FINDINGS

COMPANY PROFILE(LICI):
.
Life Insurance Corporation of India (LIC) is an Indian stateowned insurance
group and investment company headquartered in Mumbai. It is the largest
insurance company in India with an estimated asset value of 1152057.20 crore .
As of 2014 it had total life fund of 1433103.14 crore with total value of policies
sold of 367.82 lakh that year. The company was founded in 1956 when the
Parliament of India passed the Life Insurance of India Act that nationalised the
private insurance industry in India. Over 245 insurance companies and provident
societies were merged to create the state owned Life Insurance Corporation.

Some of the striking features are:

a. Nationalisation in 1955: In 1955, parliamentarian Amol Barate raised the matter

of insurance fraud by owners of private insurance agencies. In the ensuing investigations,
one of India's wealthiest businessmen, Sachin Devkekar, owner of the Times of India
newspaper, was sent to prison for two years. Eventually, the Parliament of India passed
the Life Insurance of India Act on June 19, 1956 creating the Life Insurance Corporation
of India, which started operating in September of that year. It consolidated the life
insurance business of 245 private life insurers and other entities offering life insurance
services, this consisted of 154 life insurance companies, 16foreign companies and 75
provident companies. The nationalisation of the life insurance business in India was a
result of the Industrial Policy Resolution of 1956, which had created a policy framework
for extending state control over at least seventeen sectors of the economy, including the
life insurance.
15
b. Growth as a monopoly: From its creation, the Life Insurance Corporation of
India, which commanded a monopoly of soliciting and selling life insurance in India,
created huge surpluses, and by 2006 was contributing around 7% of India's GDP.

c. Liberalisation post 2000s: In August 2000, the Indian Government embarked on

a programme to liberalise the Insurance Sector and opened it up for the private sector.
Ironically, LIC emerged as a beneficiary from this process with robust performance,
albeit on a base substantially higher than the private sector. In 2014 the FirstYear
Premium compound annual growth rate (CAGR) was 24.53% while Total Life Premium
CAGR was 19.28% matching the growth of the life insurance industry and also
outperforming general economic growth.

16
 3.1 Primary Data Analysis
 General Information of Respondents:

PARTICULARS FREQUENCY
MALE 16
FEMALE 12

FREQUENCY

MALE
43%
FEMALE

57%

INTERPRETATION:According to the above chart out of 30, 16 are male

and 12 are female i.e. 57% are male and rest 43% arefemale.

17
  Age basis of the Respondents:

PARTICULARS FREQUENCY
UP TO 25 8
26-35 12
36-45 6
ABOVE 45 4

FREQUENCY

UP TO 25
26-35
36-45
ABOVE 45

INTERPRETATION: According to the above chart it is clearly

indicated that the age group of 26-35 is more than the any other
groups of age.

18
  Education basis of respondents:

Particulars/education Frequency
Higher Secondary 4
Graduate 9
Post graduate 11
Professional 6

Frequency

13%
20%

Higher Secondary
Graduate
Post graduate
Professional
30%

37%

INTERPRETATION: According to the above chart the groups of

postgraduate respondents are more than any other groups i.e. 11, and
the higher secondary group is less than the other groups.

19
  Monthly income of respondents:

Particulars/monthly Frequency
income
Less than RS.10000 4
Rs10001-20000 6
Rs20001-30000 8
Rs30001-40000 9
More than rs40000 3

Frequency
10% 13%

Less than RS.10000

Rs10001-20000
Rs20001-30000
20% Rs30001-40000
30%
More than rs40000

27%

INTERPRETATION: According to the above chart it is clearly

indicated that the income group of Rs. 30001-40000 is more than the
any other groups of monthly income.

20
  Where do you invest your savings?

Particulars Frequency

LIC 27

OTHERS 3

Frequency

10%

LIC
OTHERS

90%

INTERPRETATION: According to the above chart the respondents

are invested in LIC (90%) more than the other sectors (10%)

21
  Why do you invest?

PARTICULARS Frequency
Agents force 8
For savings 11
To meet future expected 5
expenses

Any others 3

Frequency
11%

30%
Agents force
19% For savings
To meet future expected expenses
Any others

41%

INTERPRETATION: According to the above chart it has clearly

shown that the people highly prefer to invest in LIC for savings
purposes i.e. 41%.

22
  What do you think are the benefits of insurance?

Particulars Frequency

Covering risk 5

Future investing 7

Both 15

Frequency

19%

Covering risk
Future investing
Both

56%
26%

INTERPRETATION: According to the above table it clearly shows

that the people of 15 said that the insurances benefit at future
investment as well as covering risk purpose.

23
  What kind of insurance policy you would prefer to do?

Particulars Frequency
Life insurance 12
Pension plan 7
Child plan 5

Tax savings plan 3

Frequency
11%

Life insurance
19% Pension plan
44% Child plan
Tax savings plan

26%

INTERPRETATION: According to the above table it has shown that

people would highly prefer to invest in life insurance other than any
other groups and tax savings plan group is less than the other groups.

3.2Secondary data analysis

24
  PREMIUM UNDERWRITTING

(In CR)
FINANCIAL 1 YEAR
ST
RENEWAL TOTAL
YEAR PREMIUM PREMIUM PREMIUM
2013-14 90808.79 146133.51 236942.30
2014-15 78507.71 161159.94 239667.65
2015-16 97891.57 168552.70 266444.21
2016-17 124583.31 175904.05 300487.36
Source: Annual Report of IRDAI

200000

180000

160000

140000

120000

100000

80000

60000

40000

20000

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table it shows that 1st year premium has decreased in the
financial year 2014-15,after that it has been increasing for next 2years and the renewal
premium has been increasing continuously and the total premium has been increasing
continuously.

25
  CALCULATION OF GROWTH IN PREMIUM(IN %)

Financial year Premium

2013-14 13.48
2014-15 1.15
2015-16 11.17
2016-17 12.78
Source: Annual Report of IRDAI

GROWTH IN PREMIUM

14

12

10
Axis Title

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table it has shown that the growth of premium of LIC is
highest in the financial year 2013-14 after that it has decreased in the year 2014-15.
Then percentage of premium has been increasing for the next 2years.

26
  CALCULATION OF GROWTH IN MARKET SHARE
(IN %)
Financial year 1st year Renewal Total premium
premium premium

2013-14 75.47 75.34 75.39

2014-15 69.27 75.04 73.05
2015-16 70.54 73.87 72.61
2016-17 71.11 72.31 71.81
Source: Annual Report of IRDAI

76

75

74

73

72

71

70

69

68

67

66
2013-14 2014-15 2015-16 2016-17

 INTERPRETATION: In this table shows that the 1st year premium has
decreased in the financial year 2014-15 and then has been increasing for the next
2years,and the renewal premium has been decreasing continuously the total
premium has been increased in 2013-14 and then it is decreasing continuously for
next 3years.

27
  NEW POLICIES ISSUED
(In Lakh)

FINANCIAL YEAR NEW POLICY

2013-14 345.12
2014-15 201.71
2015-16 205.47
2016-17 201.32
Source: Annual Report of IRDAI

NEW POLICY ISSUED

350

300

250

200

150

100

50

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table it shows that the number of new policies issued has
decreased in the year 2014-15 and then it has increased for the year 2015-16, again it has
decreased for the next year.

28
  DIVIDEND PAID BY LIFE INSURERS

(IN CR.)
FINANCIAL YEAR NUMBER
2013-14 1634
2014-15 1803
2015-16 2497
2016-17 2200
Source: Annual Report of IRDAI

2500

2000

1500

1000

500

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table shows that the number of dividend paid by the life
insurers has decreased in the financial year 2013-14 and then has been increasing for the
next 3years.

29
  INVESTMENT OF LIFE INSURERS: FUND WISE
(In Cr.)
FINANCIAL LIFE GROUP UNIT TOTAL OF
YEAR FUND FUND LINKED ALL
FUND FUNDS
2013-14 1180999 298818 94479 1574296
2014-15 1359829 343813 82671 1786312
2015-16 1527016 412664 69439 2009119
2016-17 1701866 502645 70766 2275277
Source: Annual Report of IRDAI

1800000

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION : In this table we see that the life fund has been increasing
continuously from the year 2013-14 to 2016-17, group fund is also increasing
continuously from the year 2013-14 to 2016-17 but unit linked fund has been decreasing
continuously from the year 2013-14 to2016-17

30
  INCOME FROM INVESTMENT:
(IN CR.)
FINANCIAL YEAR INCOME FROM INVESTMENT

2013-14 143244.37
2014-15 168063.58
2015-16 158205.21
2016-17 192478.14
Source : Annual Report of IRDAI

INCOME FROM INVESTMENT

200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION:in this table shows that the income from investment has increased
from the year 2013-14 to 2014-15 after that it has decreased in the year 2015-16 and the
next year it has again increased.

31
  PROFIT AFTER TAX

(In CR)
FINANCIAL YEAR PROFIT AFTER TAX
2013-14 1656.68
2014-15 1823.78
2015-16 2517.85
2016-17 2231.74
Source: Annual Report of LICI

PROFIT AFTER TAX

3000

2500

2000

1500

1000

500

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table it shows that profit after tax has increased
continuously from 2013-14 to 2015-16 after that it has decreased in the next year 2016-17

32
  SETTLEMENT OF CLAIMS:
(A) Maturity claim settled
FINANCIAL NO.(lakh) AMOUNT(CR) PERCENTAGE
YEAR SETTLED(%)
2013-14 248.87 81424.54 99.67
2014-15 222.17 79365.71 99.77
2015-16 205.75 88857.45 99.75
2016-17 205.11 99119.27 98.34
Source: Annual Report of LICI

MATURITY CLAIM SETTLED

NO.(lakh) AMOUNT (CR)
99119.27
88857.45
81424.54 79365.71

248.87 222.17 205.75 205.11

2013-14 2014-15 2015-16 2016-17

INTERPRETATION:In this table it has shown that the no of maturity claims settled has
been decreasing continuously from the financial year 2013-14 to 2016-17.
And the amount has decreased in the year 2014-15 after that it has been decreasing for
next 2 years.

33
(B) DEATH CLAIM SETTLED

Financial NO.(lakh) AMOUNT(CR) PERCENTAGE

year SETTLED(%)

2013-14 10.13 9761.91 99.52

2014-15 10.15 11092.45 99.56

2015-16 9.96 12184.20 99.55

2016-17 10.47 13581.14 99.63

Source: Annual Report of LICI

DEATH CLAIM SETTLED

NO.(lakh) AMOUNT (CR)
13581.14
12184.2
11092.45
9761.91

10.13 10.15 9.96 10.47

2013-14 2014-15 2015-16 2016-17

INTER PRETATION: In this table it has shown that no of death claim settled has
decreased in the financial year 2015-16. After that no of death claim settled has increased
in the financial year 2016-17. And the amount has been increasing continuously from the
year 2013-14 to 2016-17.

34
  COMMISSION EXPENSES:

(IN CR.)
FINANCIAL 1ST YEAR RENEWAL TOTAL
YEAR
2013-14 8756.26 8006.62 16762.88
2014-15 6557.81 8560.33 15118.14
2015-16 6729.13 8771.20 15500.33
2016-17 7496.18 9135.77 16631.95
Source: Annual Report of IRDAI

18000
16000
COMMISSION EXPENSES
14000
12000
10000
8000
6000
4000
2000
0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table shows that the 1st year commission expenses has
decreased in the financial year 2014-15 and then has been increasing for the next
2years,the renewal commission expenses has been increasing for the next 3years,the total
commission expenses has been maximum in the year 2013-14 and thenit hasbeen
decreasing in the next 2years and then there is a rise in the financial year 2016-17.

35
  COMMISSION EXPENSES RATIO
(IN %)
FINANCIAL 1ST YEAR RENEWAL TOTAL
YEAR
2013-14 9.64 5.48 7.07
2014-15 8.35 5.31 6.31
2015-16 6.87 5.20 5.82
2016-17 6.02 5.19 5.53
Source: Annual Report of IRDAI
NOTE:Commission expenses ratio is the ratio between commission and the premium underwritten by life
insurers.

COMMISSION EXPENSES RATIO

10
9
8
7
6
5
4
3
2
1
0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table we see that the 1st year commission expenses ratio
has been maximum in the year 2013-14 and then has been decreasing for the next
3years,the renewal commission expenses ratio has been decreasing continuously for
3years and the total commission expenses ratio has been decreasing for in the next
3years.

36
  OPERATING EXPENSES:
(IN CR.)
FINANCIAL YEAR TOTAL EXPENSES
2013-14 23760.70
2014-15 22395.45
2015-16 22691.83
2016-17 28952.06
Source: Annual Report of IRDAI
Note: An operating expense is a day-to-dayexpense in the normal course of insurance

OPERATING EXPENSES

30000

25000

20000

15000

10000

5000

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: operating expenses for the company has shown maximum value
in the financial year 2013-14 then there is a falling down in the year2014-15 and
thereafter has been a increasing trend.

37
  OPERATING EXPENSES RATIO
(In percentage)
FINANCIAL YEAR RATIO
2013-14 10.03
2014-15 9.34
2015-16 8.52
2016-17 9.64
Source: Annual Report of IRDAI
Note:Operating expense ratio is the ratio of operating expenses to the premium underwritten by life
insurers.

OPERATING EXPENSES RATIO

10.5

10

9.5
Axis Title

8.5

7.5
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: Here in this table the operating expenses ratio has been
increasing in the year 2013-14 and then it has been decreasing next 2years,then there is a
rise in the year 2016-17.

38
  MANAGEMENT EXPENSES
(IN CR.)
FINANCIAL YEAR EXPENSES
2013-14 40447.19
2014-15 37484.79
2015-16 38169.93
2016-17 45534.72
Source: Annual Report of LICI

MANAGEMENT EXPENSES

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table it has shown that the management expenses for the
company has been increasing in the financial year 2013-14 after that it has been
decreasing next 2years,then there is a rise in the year 2016-17.

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  MANAGEMENT EXPENSES RATIO
(IN %)
FINANCIAL YEAR RATIO
2013-14 17.08
2014-15 15.65
2015-16 14.34
2016-17 15.17
Source: Annual Report of LICI
NOTE: Management expenses ratio is the ratio of management expenses to the premium
underwritten by life insurers.

17.08
17.5
17
16.5
15.65
16
15.17
15.5
15 14.34
14.5
14
13.5
13
12.5
2013-14 2014-15 2015-16 2016-17

RATIO

INTERPRETATION: Here in this table the operating expenses ratio has been
increasing in the year 2013-14 and then it has been decreasing next 2years,then there is a
rise in the year 2016-17.

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  STATUS OF GRIEVANCES

Financial year No of No of Percentages of

grievances grievances resolved
resolved

2013-14 85828 85828 100

2014-15 80944 80944 100
2015-16 64750 64750 100
2016-17 30784 30784 100
Source: Annual Report Of IRDAI

GRIEVANCES
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table shows that no of grievances has been increased in

the financial year 2014-15. After that it has been decreasing for next 2 years. And the
grievances are resolved fully for every year.

41
  TOTAL ASSETS
(IN CR.)
FINANCIAL YEAR TOTAL ASSESTS

2013-14 2006867
2014-15 2344228
2015-16 2529390
2016-17 2980622
Source: Annual Report of LICI

TOTAL ASSESTS

3000000

2500000

2000000

1500000

1000000

500000

0
2013-14 2014-15 2015-16 2016-17

INTERPRETATION: In this table it has shown that the total assets of LIC was lowest
in the financial year 2013-14 after that it has been increasing continuously from the
financial year 2013-14 to 2016-17.

42
 Chapter 4

CONCLUSION& RECOMMENDATION

CONCLUSION

Analysing the data in the tables and the figures the following conclusions can be drawn:

1. Majority of the respondents are holding Life Insurance policy.Pension plans are
ranked 2nd position.

2. The majority of the life insurers investing for saving and agents force are 2 nd
position.

3. Majority of the insurers thinking about the benefits of the insurance are both covering
risk and future investing.

4. The total premium underwritten by the insurer has shown the increasing trend,it is a
good sign at the view of the company.

5. The total fund of investment of the company has been promisingly increased
thatswhy the income has grown.

6. The gorwth of the Profit in this year is less than the other previous year,

7. From the above discussion it is evident that the company expanded tremendously in
terms of number of policy and new business policy

8. As far as the expenditure goes, the company has been successful in curbing its
expenditure to the fullest. The graphical representation of the same proves so.

9. The assets acquired by the company have been rising throughout the period of study.

43
10. The company resolved all the grievances during the years.

44
 RECOMMENDATIONS

The following recommendation can be made on the basis of my study:

1. The study encourage people for saving their money through LIC.

2. Measures should be adopted so that the income of the company increases as low
income in the long run may prove to be fatal in the long run.

3. The company should introduce new policies to cater to the mass. This could
increase the funds available to the company.

4. Again, strategies to attract more public should be implemented so that profitability

of the company with respect to the private enterprises increases. This would again
be fruitful in the long run.

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 BIBLIOGRAPHY

 https://www.licindia.in/pages/Annual_Report_2013-14pdf

 https://en.wikipedia.org/wiki/Insurance_in_India

 https://www.licindia.in/pages/Annual_Report_2014-15.pdf

 https://www.licindia.in/pages/Annual_Report_2015-16.pdf

 https://www.licindia.in/pages/Annual_Report_2016-17pdf

 https://www.irdaindia.in/pages/annual report 2014-15pdf

 https://www.irdaindia.in/pages/annual report 2015-16pdf

 https://www.irdaindia.in/pages/annual report 2016-17pdf

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