4 I’s of LIC

4 I’s of LIFE INSURANCE CORPORATION OF INDIA

1. Intangibility

Unlike products, services cannot be held, touched, or seen before

the purchase decision thus, they should be made tangible to a
certain extent. Marketers should “tangibilize the intangible” to
communicate service nature and quality. This can be done
through:

 Environment

♣ Uniforms

♣ Paperwork

♣ Brochures

Insurance is a guarantee against risk and neither the risk nor the
guarantee is tangible. Hence, insurance rightly come under
services, which are intangible. Efforts have been made by the LIC
to make insurance tangible to some extent by including letters
and forms.

For example
Form No.300(BN)
LIFE INSURANCE CORPORATION OF INDIA
(Established by the LIC Act 1956)
Branch Office ………………. Proposal No ………………. Agent’s
Name …………………………….
Licence No ……………………… Dt. of Expiry …………………….
Agent’s & DO Code …………….
NOTE:

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This form has to be filled in by the proposer in his/her own

handwriting. If he/she cannot write in
the language of this form or he/she is illiterate, the proposal form
can be filled in by the
Agent/Third party as per normal rules.
1 a) Name in full (IN BLOCK LETTERS):
………………………………………………
Mr. /Mrs./Miss ………………………………………………
b) Short Name ………………………………………………
c) Address for Correspondence
………………………………………………
………………………………………………
………………………………………………
d) Nationality ………………………………………………
e) Are you resident in India ………………………………………………
f) Father’s Name in full ………………………………………………
2 a) Table/Term ………………………………..b) Sum Assured
………………………..
c) Amount of deposit ………………………..d) Date of
Birth………………………….
e) Age Proof …………………………………………..
3 a) Nominee under Section 39 of the Insurance Act, 1938, to
whom policy moneys
will be payable in the event of death.
Nominee’s full name:
…………………………………………………………………
(IN BLOCK LETTERS)
Age ……………………………..Relation to yourself
……………………………….
Full Address ………………………………………………….
………………………………………………………………….
………………………………………………………………….
b) Appointees Name with signature to whom the policy money is
payable in the
event of the claim arising during the minority of the nominee.
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Full Name of the Appointee:

…………………………………………………………
(IN BLOCK LETTERS)
Full Address ………………………………………….
……………………………………………………………………………
Signature of the Appointee ……………………………………………
Relationship to the Nominee ………………………………………….
Age of Appointee ……………………………………………………….
:2:
4 (a) Present Occupation ………………………………...
(b) Nature of duties ………………………………….
(c) Annual Income ………………………………….
(d) Total Sum Assured under
Previous policies under
………………………………………………………………
Table 132
5 (a) Has a proposal on your life or an
application for revival of a policy
on your life made to this or any
other Office of the Corporation ever
been ……………………………………………………..
(i) Declined : Yes/No………………………..
(ii) Accepted with extra; if yes,
State the highest extra
Imposed (excluding age extra) : ………………………………….
(b) Is any proposal/application for
revival pending with any office of
the Corporatin, if so, give the details : …………………………………..
6 Your exact Height without shoes (in cms) : …………………….
Your exact Weight (in Kgs.) : …………………….
Answer ‘Yes’ or ‘No’
(If ‘NO’ give details)
7 Are you at present in good health? :
……………………………………
8 Have you ever been admitted to a
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Hospital/Nursing Home for taking

Treatment for a week or more during
The last 3 years? (If ‘Yes” give details) :
……………………………………
9 Have you any physical deformity?
If Yes, give details and total
Sum Assured in force under all previous
policies taken during last five
calendar years including current year. :
…………………………………….
10 To be answered by female proposer only
a) Total sum assured in force under all
Previous Policies taken during last
5 calendar years including current
year : …………………………………….
b) If you are married
(i) Are you pregnant now? : …………………………………….
(ii) have you had any pregnancy
related problems at any time : …………………………………….
:3:
DECLARATION BY THE PROPOSER
I
………………………………………………………………………………………
…….. do hereby
Declare that the foregoing statements and answers have been
given by me after fully
understanding questions and the same are true, and complete in
every particular. I agree that if
any untrue averment by contained therein the said contract shall
be absolutely null and void and
all moneys which have been paid in respect thereof shall stand
forfeited in part or full to the
Corporation.
Dated at ………………………… on the ………………. day
……………………………….. 199…..
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Name of witness ………………………………………………

Signature of witness ………………………………………….
Occupation …………………………………………..
Address …………………………………………
………………………………………………………………………
……………………………………………………………………… Signature
or thumb impression
of the person whose life is
proposed to be assured
If the answers to the questions in this form are given in
vernacular and the proposer signs in
vernacular then the proposer signs in varnacular then the
proposer should declare in his/her own
handwriting above his/her own signature that all questions were
explained to him/her and that
his/her replies were given after fully and properly understanding
the same.
OR
In case the prposer is illiterate, the thumb impression of the
proposer should be attested by a
person of standing whose identity can easily be established but
unconnected with the Corporation
and this declaration should be made by him/her.
I hereby declare that I have fully explained the
Above questions to the proposer in …………….
(language) and I have truthfully recorded the
answers and explained to the proposer and that
the proposer has affixed his/her thumb
impression to the proposal form after duly
understanding the contents thereof.
Address of the declarant …………………………………
………………………………………………………………
………………………………….
……………………………………………………………… (Signature of the
Declarant)
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NOTE: In case of dispute in respect of interpretation

of terms the English version shall stand valid.

2. Inconsistency

Service quality is often inconsistent. This is because service

personnel have different capabilities, which vary in performance
from day to day. This problem of inconsistency in service quality
can be reduced through standardization, training and
mechanization.

In LIC, all agents are trained to bring about consistency in

providing service and, the insurance process is mechanized to a
certain extent. Eg: the customers can be reminded about the
payment of premium through e-mails and sms instead of agents.

For example,
➢ LIC offers it’s customers to calculate the premium amount
they have to pay by their own
Premium Calculator

Product Number : 168

Product Name : Jeevan Anuraag
Top of Form
f a ls e

Regular
Mode
of Single

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Premiu
m:
Date
of
birth: (dd/mm/yyyy)
SumAs
sured:
(in Rs.)
(Range: Rs.50000 and above)

Policy true

term:
(in yrs.)
Premiu true

m
paying
term:
(in yrs.)
Accide false 0 NBD NBD NBD

nt
5000 20 60 50000 99999999999
benefit:
10 25 70 168 false

Calculate Premium Select

Another Product
Bottom of Form

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Disclaimer:
The calculated premium is based on the data entered by you. It
gives the basic premium and not include any extra premium which
might be added based on underwriting rules followed by LIC

➢ LIC also offers online payment options

Online Payment
Online Payment Gateway is LIC’s initiative to provide you with on
demand service within a few clicks! You can now have many of
the functionalities that were available only at a branch office,
online at your fingertips.

The payment gateway (PG) initiative is an important component of

the offer. It provides for real-time payment of renewal premium-
dues through the portal. This functionality is available only to
registered customers who have enrolled their policies.

Customers / Development
Officers /
Agents / Employees login
here for the Portal :

New User? Click

Here

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Must Read for

Portal Users

You can pay LIC premiums using Net Banking accounts with any of
the following banks:-
• Bank of India
• Union Bank of India
• Punjab National Bank
• State Bank of India
• State Bank of Indore
• HDFC Bank
• ICICI Bank
• Axis Bank
• Citibank
• IDBI Bank
• Centurion Bank of Punjab (erstwhile Centurion Bank)
• Centurion Bank of Punjab (erstwhile Bank of Punjab)
• IndusInd Bank
• ABN AMRO Bank
• Kotak Bank
• Bank of Baroda
• Bank of Baroda - Retail NetBanking

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• Bank of Baroda - Corporate NetBanking

• State Bank of Patiala
• State Bank of Bikaner & Jaipur
• State Bank of Travancore
• City Union Bank
• Indian Overseas Bank
• Karnataka Bank
• Oriental Bank of Commerce
• State Bank of Hyderabad
• State Bank of Mysore
• State Bank of Saurashtra
• South Indian Bank
• Yes Bank
This facility is available for all non-ULIP policies.
Credit card payments are not accepted under this payment
facility.
Here’s a simple step-by-step guide on how you can go about using
this facility:
1. Once you have enrolled your policy(s), you can click on the
link ‘Pay Premium Online’ to see a list of policies whose
premium is due.

2. You have a choice to select the policies for which you want to
pay premium.

3. You will be directed to a page where you can choose from

multiple banks for payment and will be directed to the login
page of the selected bank. It is essential that you have a net
banking account with at least one of these banks.

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4. At the bank site you will need to login with your net banking
username/password. On successful login, the total amount to
be paid by you towards LIC will be displayed.

5. Please verify your balance (displayed) and confirm the

transaction to the bank. Simultaneously
successful/unsuccessful transaction message will be flashed.

6. On successful transaction, a digitally signed e-receipt will be

generated and e-mailed to you. In case of an unsuccessful
transaction you will be informed and the reason thereof.
7. For detailed documentation on how to verify the digital
signature on the e-receipt, click here.
8. For installation of root certificate, you need to download the
RCAI-Class3.p7b file and import the same as per e-receipt
verification documentation (eReceipt_Verification_Help.pdf).
Click here to download the RCAI-Class3.p7b file.
Benefits
• There is no further registration involved at the service
provider end.
• There is no time lag from the date of payment to obtaining
receipts.
• It is also a secure arrangement, as the policy data is not
shared between LIC and Banks over net as only the amount
to be paid is encrypted and transported. The login id at both
the sites (LIC and Bank) is known only to you.
• And above all there is no charge for you to avail this service.

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3. Inseparability

Services are produced and consumed simultaneously. Consumers

cannot and do not separate the deliverer of the service from the
service itself. Interaction between consumer and the service
provider varies based on whether consumer must be physically
present to receive the service.

In insurance sector too, the service is produced when the agent

convinces the consumer to buy the policy and it is said to be
consumed when the claim is settled and the policyholder gets the
money. In both the above cases, it is essential for the service
provider (agent) and the consumer (policy holder) to be present.

For example,we do not differenciate LIC from the other Insurance

companies.We perceived all of them as Insurance company.

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4. Inventory

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No inventory can be maintained for services. Inventory carrying

costs are more subjective and lead to idle production capacity.
When the service is available but there is no demand, cost rises
as, cost of paying the people and overhead remains constant
even though the people are not required to provide services due
to lack of demand.

In LIC however, commission is paid to the agents on each policy

that they sell. Hence, not much inventory cost is wasted on idle
inventory. As the cost of agents is directly proportionate to the
policy sold.
For example, LIC agents earn money on a commission basis.
Depending on the policies they sell, they could earn a
commission from 10% up to 40% of the first premium.
They also earn an attractive commission on the second and third
premiums that their customers pay.
Say if they sell a policy whose annual premium is Rs.10000, they
can earn a commission from Rs.1000 to Rs.4000 depending on
the policy on the first premium and also 7 ½% on the second
premium and 5% on the third premium amount.

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