CHAPTER 4.

MARKETING MIX OF LIFE INSURANCE CORPORATION OF INDIA

Life Insurance Corporation of India (LIC) (Hindi:

ZZZSDFG ) is an Indian state-owned insurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of 1560481.84 crore

(US$250 billion). As of 2013 it had total life fund of Rs.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. OBJECTIVE OF LIC:

Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.

Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best

advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.

Act as trustees of the insured public in their individual and collective capacities.

Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.

Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

MARTKETING OF PRODUCTS/PLANS OF LIC A product is a physical unit or a service or some combination of a physical unit and a service. A product is to satisfy the needs of its target customers. Life Insurance is a service-oriented product offered to people to satisfy the need to cover risk on human lives. A product, which satisfies todays needs of people and become popular, is likely to get faded in popularity over a period of time due to a number of reasons. Therefore, the life cycle of a product is estimated, essentially to plan for its replacement with a new product before it is withdrawn from the market. New products are planned to suit the customers

changing needs and requirements and to appeal to the prospective customers of new target markets. Life Insurance Corporation of India introduced various new products or plans from time to time to suit the varied needs of people and to appeal to the prospective customers. It has also withdrawn a number of insurance plans, which faded in popularity. The life insurance products can be classified into two types namely participating and non-participating (Also known as with profit and without profit plans). Participating policies or with profit plans are like equity stocks.

Insurance plan 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 policies that talk to you individually and give you the most suitable options that can fit your requirement.

Pension Plans Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

Unit plans Unit plans are investment plans for those who realise the worth of hardearned money. These plans help you see your savings yield rich benefits and help you save tax even if you don't have consistent income.

Special plan LICs Special Plans are not plans but opportunities that knock on your door once in a lifetime. These plans are a perfect blend of insurance, investment and a lifetime of happiness!

Micro Insurance Plans

LICs Micro Insurance Plans are not plans but opportunities that knock on your door once in a lifetime. These plans are a perfect blend of insurance, investment and a lifetime of happiness!.

Group Insurance 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.

Health Plans LIC's JEEVAN AROGYA