Introduction to LIC
Life Insurance Corporation of India was created on
1st September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable
persons in the country, providing them adequate financial cover at a reasonable
cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices,
apart from its corporate office in the year 1956. Since life insurance contracts
are long term contracts and during the currency of the policy it requires a
variety of services need was felt in the later years to expand the operations
and place a branch office at each district headquarter. Re- organization of LIC
took place and large numbers of new branch offices were opened. As a result of
re-organization servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the performance of
the corporation. It may be seen that from about 200.00 crores of New Business
in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it
took another 10 years for LIC to cross 2000.00 crore mark of new business. But
with re-organisation happening in the early eighties, by 1985-86 LIC had
already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the Corporate office. LIC’s Wide Area
Network covers 100 divisional offices and connects all the branches through a
Metro Area Network. LIC has tied up with some Banks and Service providers to
offer on-line premium collection facility in selected cities. LIC’s ECS and ATM
premium payment facility is an addition to customer convenience. Apart from
on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders, LIC
has launched its SATELLITE SAMPARK offices. The satellite offices are smaller,
leaner and closer to the customer. The digitalized records of the satellite
offices will facilitate anywhere servicing and many other conveniences in the
future.
LIC continues to be the dominant life insurer even in the liberalized
scenario of Indian insurance and is moving fast on a new growth trajectory
surpassing its own past records. LIC has issued over one crore policies during
the current year. It has crossed the milestone of issuing 1,01,32,955 new
policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the
corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business. The same motives which inspired our forefathers to bring insurance
into existence in this country inspire us at LIC to take this message of
protection to light the lamps of security in as many homes as possible and to
help the people in providing security to their families
Life Insurance Corporation of India is a wholly owned undertaking of the
Government of India.
Life Insurance Corporation of India was established by an Act of
Parliament on 1st September, 1956. Its Central Office is located in Mumbai. It
also has seven zonal offices each located in Mumbai(Western Zone), New Delhi
(Northern Zone), Kanpur (North-Central Zone), Bhopal (Central Zone), Chennai
(Southern Zone), Hyderabad(South-Central Zone), and Kolkotta (Eastern Zone).
It has a network of over 2000(2048) branches and more than nine lakh
agents.
Over 47 years, LIC has become a household name for providing security for
a lifetime and is synonymous to life insurance in India.
LIC ranks No.1 in the list of top 500 companies on the basis of Net
Worth(Rs. 15, 47, 951 million) as well as Net Profit(2,66,277 million)- Dun
& Bradstreet (India 500)
Mission
"Explore 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."
"Explore 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."
Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
Goals
·
Promote
within the Corporation greater awareness of the changing environment and the
need to align the corporate policy to the emerging situation.
·
Help
fashioning, within the constraints, its policies, programmes, practices and products
to meet the expectations of the Public. Help the public to appreciate the performance
and the limitations of LIC.
Product Offered By LIC
Insurance Plan
As individuals it is inherent to differ. Each
individual’s insurance needs and requirements are different from that of the
others. LIC insurance plans are policies that talk to you individually and give
you the most suitable option that can fit customer requirements.
Children plan
·
Komal Jeevan
- Plan No. 159
·
Children
Deferred - Plan no.41
·
Jeevan
Kishore - Plan no.102
·
Jeevan Chhaya
- Plan no.103
·
Marriage
Endowment/Educational Annuity - Plan No. 90
·
Jeevan Anurag
- Plan no.168
Endowment Policy
·
Endowment
with Profits - Plan no.14 Limited
Payment Endowment with Profits - Plan no.48
·
Jeevan Mitra
- Plan no.88
Group Insurance Policy
Group Insurance Scheme is life insurance protection to groups of people.
This scheme is ideal for employers, associations, societies etc. and allows you
to enjoy group benefits at really low costs.
·
Janashree
Bima Yojana
·
Group
Insurance Scheme in lieu of EDLI
·
Group (Term)
Insurance Scheme
·
Group Savings
Linked Insurance Scheme
Group
Superannuation Scheme
Group Mortgage Redemption Assurance Scheme
Group Mortgage Redemption Assurance Scheme
Joint Life Policy
·
Jeevan Saathi
- Plan no.89
Money Back Policy
·
Money Back
with Profit - Plan no.75
·
New Money
Back - Plan no.93
RECENT INNOVATION STARTEGY FOR
ENHANCING CUSTOMER SATISFACTION BY LIC
LIC has realised the importance of personal involvement and has included
it in the training program itself. Once the Agent is recruited he needs to
undergo a compulsory training program designed by LIC. The Training Program
also explains them the importance of the smallest of the customer .i.e.
customer who is just seeking general information. The
Agents and Employees are trained to Apologise to its customers even if they are
not at fault.
“SO IT DOSENT TAKE MUCH OF TIME FOR THE HANDS OF THE LIC LOGO TO COME
CLOSER FOR APOLOGY”
, LIC has established elaborate
Grievance Redressal Machinery at different level as per the customer
requirement. There are Complaint cells which are specially set up to
listen up to each and every customer’s problems. LIC gas also set up Policyholder
Councils and Zonal Advisory Boards to understand the problems of their
customer situated in any part of the city.
Offers a Fair Fix to Problem:
Customers want wrong to be set right and
expects service contact employee to be skilled, empowered and interested in
setting things right.
This is the main reason why LIC conducts
training programs for the newly recruited Agents as well as the other
Employees. In any kind of breakdown situations LIC try to offer a rational
explanation and demonstrate sensitivity and concern to the customer rather than
defending themselves.
Offers Some Compensation for the Inconvenience:
Compensation here wouldn’t mean of just monetary compensation or some
extreme measures like firing the Branch Manager Etc; but it is just to make-up
for the loss of customer satisfaction. It could be like “it’s on us”; “free
service” etc. The service provider should plan certain compensation policies in
advance for various types of situations and deliver it as and when the
situation is faced.
Keep the
Promises:
It basically means that the Company should keep the promises made to the
Customer before or at the time of service provision i.e. the Company should
fulfill its commitments.
LIC makes sure that none of the Agents provide any kind of wrong
information or false promises to its customers which mislead them. LIC ask
their Agents to give reasonable commitments so that they could be fulfilled by
the Company or the Agent on behalf of the Company.
Follow Up:
This is the most important step in Service Recovery as it ensures that
whether the implemented Service Recovery was Satisfactory or not. It would
include Internal and External Follow-up. Internal Follow-up would be to ensure
that the solutions they put in motion are actually executed and the External
part would be to get feedback from the customer whether he is satisfy
Complaint Handling
In a vast Organization like LIC, catering to
the various needs and aspirations of millions of policyholders, grievances of
customers do arise occasionally. In order to redress these grievances LIC has
established elaborate Grievance Redressal Machinery
IT in LIC
In today’s world, IT is a must for any
industry to keep pace with the customer’s changing expectations. This is
especially relevant in the service industry. The insurance sector has to ensure
that the technology it chooses does not lag behind where customer expectations
are concerned.
LIC has more
than 16 crore policy holders. So it has to induct the best IT products
available and use them to cater to the needs of the customers and deliver
anywhere any time service on demand and to add value to its new products. The
trust and the goodwill of the customer gained in the last 50 years have to be
consolidated by making all activities more customer-focused.
For instance,
LIC has a corporate Web site to provide information on products, services,
policy status, grievances and premium calculator. Other facilities include
touch-screen information kiosks at central locations to provide 24 x 7 inquiry
services to customers.
EMERGING MARKETING PRACTICES & TECHNIQUES OF
LIC
With the emergence of competition, LIC has
implemented strategic moves for business growth, as well as ensured quality
improvement in service standards. As on today, they have been providing service
to around 12 crore policy holders and their track has been well acknowledged as
reflected through continual upgradation of service standards culminating into a
world class performance in the area of claim settlement operations.
It is well acknowledged that LIC has been
able to provide appropriate IT support in furtherance of prompt service to
their valued policy holders. The complex task of conversion of computerization
of all the branches with their conversion as Front Line offices has been
completed in aphase manner. In addition to this, the launching of the IVRS
facility, MAN and Wide Area Network operations has helped the co-operation improve
its servicing.
LIC’s strength lies in:
- Wide network of branches covering rural areas.
- A large and well- spread agency organization.
- An acknowledged record of performance.
- Adequate yield with high risk cover being offered keeping the policy
holders satisfied in the existing in the economic scenario.
- Well accepted brand equity throughout the country.
In addition to this, LIC has an established
and well administered Grievance Redressal Mechanism and with Ombudsman
intervention, the customers appear to be well attended. However, this mechanism
has to be restructured keeping in view the additional legal provisions laid
down by the regulator as expounded in the IRDA act.
Futuristic Approach
Till today, LIC enjoyed a monopoly. It is now
that reality exists in the are of marketing (i.e. sales and after sales service
operations). It will now have to follow a multi-faceted strategy towards
customer retention and also expanding to a new clientele. With the new face of
the market, relationship management seems to be the new mantra.
At the nucleus of this approach is the
concept of Customer Relationship management. The need is to have a
comprehensive review of the business keeping in view customer expectations
Customer Orientation
LIC, to be in the reckoning, has to have an
efficient feed-back system, so as to understand what the customer desires in
terms of product design, service procedures, relationship convinience,
accessibility, responses in terms of personalized service, attendance, core and
complimentary on an individual basis. The new players in the market like ICICI,
HDFC etc. will definitely be very aggressive in the open market. LIC has to go
ahead with their former customers, existing customer, in a very gentle and
courteous manner, reassuring them of their better services with persona,
attention.
ADVERTISING TREND IN LIC
·
News Papers and Magazines
LIC give ads in the news papers and
magazines round the year to continue its brand image and also when new products
are introduced. Normally its ads are published in Times of India.
·
Television
Companies like LIC, advertise on television to make people aware of their products
and services
·
Gifts
LIC provides diaries, pens,
booklets, etc to its customers
·
Hoardings
LIC put its
hoardings where there is a mass flow of people, especially outside the railway station or at the backside of the
bus.
·
Advertisement At Kumbh Mela
LIC has also advertised
about its products and the corporation even in the kumbh mela
·
Advertisement On Radio
satellite channel
Advertisement about LIC
are frequently been telecast on radio and
satellite channel.
