CHAPTER 1

INSURANCE IN INDIA

1.1. INTRODUCTION

Insurance is a federal subject in India. The insurance

sector has gone through a number of phases and changes. Since 1999,
when the government opened up the insurance sector by allowing

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private companies to solicit insurance and allowing foreign direct
investment of up to 26%, the insurance sector has been a booming
market. However, in India, the government owns the largest life-
insurance company.

1.2. HISTORY

In India, insurance has a deep-rooted history. 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fundamental basis of the historical reference to insurance in these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. 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. The
pre-independence era in India saw discrimination between the lives of
foreigners (English) and Indians with higher premiums being charged
for the latter. In 1870, Bombay Mutual Life Assurance Society became
the first Indian insurer.

At the dawn of the twentieth century, many insurance

companies were founded. In the year 1912, the Life Insurance
Companies Act and the 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

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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 Ltd., which was founded in 1906. It is in business.

1.3. ACTS

The insurance sector went through a full circle of

phases from being unregulated to completely regulated and then
currently being partly deregulated. It is governed by a number of acts.

The Insurance Act of 1938 was the first legislation

governing all forms of insurance to provide strict state control over
insurance business.

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 CHAPTER 2

LIFE INSURANCE OF INDIA

2.1. INTRODUCTION

Life Insurance in its modern form came to India from

England in the year 1818. Oriental Life Insurance Company started by
Europeans in Calcutta was the first life insurance company on Indian
Soil. All the insurance companies established during that period were

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brought up with the purpose of looking after the needs of European
community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring
Indian lives. But Indian lives were being treated as sub-standard lives
and heavy extra premiums were being charged on them. Bombay
Mutual Life Assurance Society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at
normal rates. Starting as Indian enterprise with highly patriotic motives,
insurance companies came into existence to carry the message of
insurance and social security through insurance to various sectors of
society. Bharat Insurance Company (1896) was also one of such
companies inspired by nationalism. The Swadeshi movement of 1905-
1907 gave rise to more insurance companies. The United India in
Madras, National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906. In 1907,
Hindustan Co-operative Insurance Company took its birth in one of the
rooms of the Jorasanko, house of the great poet Rabindranath Tagore,
in Calcutta. The Indian Mercantile, General Assurance and Swadeshi
Life (later Bombay Life) were some of the companies established
during the same period. Prior to 1912 India had no legislation to
regulate insurance business. In the year 1912, the Life Insurance
Companies Act, and the Provident Fund Act were passed.

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 The first two decades of the twentieth century saw lot
of growth in insurance business. From 44 companies with total
business-in-force as Rs.22.44 crores, it rose to 176 companies with total
business-in-force as Rs.298 crores in 1938.

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
crores mark of new business. But with re-organization happening in the
early eighties, by 1985-86 LIC had already crossed 7000.00 crores Sum
Assured on new policies.

Some of the important milestones in the life insurance business in India

are:

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1818: Oriental Life Insurance Company, the first life insurance
company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life
insurance company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-
life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance

Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken
over by the central government and nationalized. LIC formed by an Act
of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5
crores from the Government of India.

The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British.

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2.2. NATIONALIZATION

In 1955, parliamentarian Feroze Gandhi raised the

matter of insurance fraud by owners of private companies. In the
investigation, one of the India’s wealthiest businessmen, Ram
Krishnan Dalmia, owner of the Times of India newspaper, was sent to
prison for two months. Eventually, the Parliament of India passed the
life insurance of India Act on 19.06.1956 and the LIC of India result of
the Industrial Policy Resolution of 1956, which has created a policy
framework for extending state control over at least 17 sectors of the
economy, including the life insurance. The company began operations
with 5 zones officers, 33 divisional officers and 212 branches offices.

2.3. SUBSIDIARIES

LIC of India international is a joint venture offshore

company promoted by LIC which commenced operations in July 1989
with the objectives of offering US $ denominated policies to cater to
the insurance services to holders of LIC policies currently residing the
Gulf. LIC international operates in all countries.
LIC Nepal is a joint venture company formed in 2001
with the Vishal Group of Industries, Nepal.

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 LIC Lanka is a joint venture formed in 2003 with the
Barleet Group of company, Sri Lanka.

2.4. OBJECTIVES

• 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 money belongs to the policyholders.

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 • 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.

2.5. LIC IS TRUSTED BRAND OF INDIA

1. As a Government of India owned company, LIC is 51+ years old

in the field of life insurance and money management. LIC’s Life
Fund size as on day is more than Rs. 5 lakhs thousand crores!
2. Any LIC policyholder or the nominee will vouch for the best
claims settlement from LIC. Perhaps, this is the only institution
where you as a policyholder are virtually chased till such time
your claims cheque is handed over to you.

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3. LIC has won ‘NDTV Profit leadership award 2007 under life
insurance category’, ‘Outlook money award 2007 as the best life
insurer’, ‘CNBC awaaz consumer award 2007 as the best life
insurance company’, ‘Golden peacock award for excellence in
corporate governance 2007’, ‘Web 18 genius of the web award
2007 and many more’.
4. LIC adjudged number one trusted service brand to the 4th
successive year by ET Brand Equity Survey.
5. LIC has adjudged Super brand India for 2004-06 and reader’s
digest ‘Trusted brand’ Asia 2007.
6. This is the only corporation that is catering to more than 190
million satisfied policyholders in India and abroad.
7. This is one of the very few institution that pays interest on
pending maturity claims!
8. More than 2050 LIC branches all over India are connected
together to serve. You can pay your premium anywhere in the
country.
9. During its long existence, LIC has kept on updating its portfolio
by bringing in new plans depending on public requirement. More
than 50 of them are most popular and can be customized to meet
any of your requirements. LIC ULIPs have become extremely
popular due to the returns they offer.

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 Most Trusted Brand 2010 Top in Insurance Category

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CNBC AWAAZ CONSUMER AWARD 2007

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2.6. POSITIVE AND NEGATIVE POINTS OF LIC

I. POSITIVE POINTS

i. LIC is owned by the government and therefore it is the only

company that has the sovereign guarantee of the Govt. of India.
Today LIC has become so powerful that the Govt. leans on LIC
every time when the Stock Market crashes. Imagine having as
Asset base of over Rs. 6 Lac Crores. That’s a 14 digit number!
Number company in India can boast of such figures.
ii. LIC is the only Life Insurance Company making profits. Most of
the Private Insurers including the self proclaimed market leaders
like ICICI and Bajaj Allianz are booking heavy losses. The point
that if an insurance company makes losses year over year, then
how will they manage to pay the Claim amount? After all number
Insurance Company is here to do charity business.
iii. When it comes to paying claims, again LIC is Number One with
the claims settlement ratio of more than 99%. Private Insurers
cannot match LIC’s ability on claims settlement.
iv. LIC has the world’s largest sales force, over 10 lac agents and
now Universities in Western Countries are trying to study how a
company managed to appoint such a large sales force. A sales
force of over 1 million!

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v. Many people argue that LIC has not been able to penetrate the
market as it has insured only 15% of the population. My point is,
in a poor country like India where there are so many people
living below the poverty line, so many people who die of
starvation, so many people who don’t have access to basic
medication, so many people who don’t have basic necessities of
life like food, shelter, education and clothing. Will such a person
first feed his children or buy Insurance? Lets not forget that a
majority of the Indian population is poor and a substantial
percentage is living below the poverty line. At a personal level I
feel that LIC has done a satisfactory job of insuring people.

II. NEGATIVE POINTS

i. The Administrative staff in LIC is in deep slumber. Try writing a

complaint to them and they won’t even bother to reply back. If
you ask the Branch Manager for the complaints book, he
probably won’t have it in place. If an Agent complains against
nay staff, then the Agent is black listed and next time onwards his
work is not done.

ii. In order to show a better performance & achieve branch Targets,

Agents are motivated by the Manager to split the policies. This
not only ads to the inconvenience of the policyholders but it also

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 increases the expenses of LIC. Competitions for Agents are held
with Prizes being offered on the number of policies sold and not
on the number of lives insures. Therefore, many Agents are
tempted to split the policies in order to get better prizes.
However, if an agent wants the forms or sales literature, most of
the time its out of stock. But surprisingly, just a week before any
such scheme is about to close, the office is flooded with forms &
sales literature. This is disturbing.

iii. As I earlier said, LIC is lacking in Effective Leadership in recent

times. Managers having designations like Marketing Manager or
Sales Manager do not have the capability to motivate an audience
at a meeting. Yes this is true even in a city like Mumbai, even the
Senior level managers cannot make effective presentations or
design a sales strategy. Their only mantra at an Agent’s meeting
is “Friends, bring more policies”. If you ask them how to bring
more policies, they won’t know. It is a pity.

iv. Though LIC has more than 2000 branches, they are not
systematically located. In Mumbai’s Fort area, LIC has more then
20 branches within a radius of 1.5 Kms. Whats the use? In the
suburbs where most of the people reside, there are number
branches at all. LIC has number branches in Bandra (East), Khar
(East) & (West), Santracruz (East), Vile Parle (East), Andheri

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 (West), Jogeshwari (West), Mahim, Matunga etc. If LIC gives a
thought to systematic relocation of its offices, it will immensely
help the policyholders.

v. Even though LIC claims to have taken several initiatives in the IT

sector, policyholder s still face problems in revival of their
policies, payment of premium in several branches, change of
mode, change of address etc. The After-sales policy services
department needs to be revamped. Policyholders feel that LIC
agents are humble while selling a policy and thereafter, they fail
to provide any service to the client. The truth is that LIC is so
weak in policy services department, that even a good agent finds
it difficult to get the work done from the administrative staff.

To sum up, I would say that LIC will never cheat a Policyholder in
payment of claim, but at the same time everyone will agree that LIC is
not responsive to the needs of the customer. If you have purchased an
LIC policy, then don’t forget to pay the premium on time and when
your policy gets matured, LIC will honestly pay your Maturity amount
on time.
The employees are sometimes rude in their behavior with the
policyholder. If a claim cheque is handed over by a courteous and
smiling employee of LIC, it ill enhance the image of LIC in the mind of
the policyholder.

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Today LIC is not just an Insurance Company, LIC is a Movement, LIC
is a Cult, LIC is a Religion. Imagine 10 lac agents and 1 lac employees
servicing 16 crores policyholders in India. You cannot deny that LIC
has become the way of lifer in India. Daily you can hear someone or
the other talking of LIC in local trains, at fish markets, at restaurants,
on News Channels, in your own offices etc.
As I earlier said, LIC has started lacking in effective leadership. If a
company like LIC starts sponsoring irrelevant awards like Zee Cine
awards which it had done 2 years ago, then it will send wrong message
in the minds of the policyholders. Imagine India’s most famous
institution sponsoring a Cine Awards function stating that it was done
to increase the brand awareness of LIC. That sounded like a big joke. It
is time that the top level officials of LIC come out of their air-
conditioned cabins and travel by public transport for sometime in order
to feel the pulse of the common man.

2.7. LIC settles claims faster than private insurers

NAGPUR: Public sector insurance behemoth Life Insurance

Corporation (LIC) leaves the private insurers much behind when it
comes to promptness in settlement of claims. "The private players may
be prompt in selling their products but are not as efficient as LIC when

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it comes to settle the claims and need to improve on this front," said the
union minister of state for finance Namo Narain Meena. He was
addressing a meeting to mark the golden jubilee of LIC Agents
Association's Nagpur unit.

Meena, who holds the charge of insurance and

banking departments in the ministry, said LIC did not make claimants
run from pillar to post for getting the settlement. "This only indicates
transparency in the functioning of public sector organization," said
Meena, indirectly flaying the private sector insurance companies. He
added that still a large section of population needed to be covered by
banking and bringing them into the banking fold remained a top
priority of the ministry.

Later, speaking at an interactive meet organized by

the Nag Vidarbha Chamber of Commerce (NVCC), Meena said the
government was aiming to extend banking facilities to 73,000 villages
by March 2012. He said there were 1 lakh villages with a population of
over 2,000 and only around 37,000 had access to bank branches. The
remaining would be covered under the financial inclusion scheme of
the government. This target was set in this year's budget.

Meena said the villages would be provided services

by individuals appointed as 'banking correspondents'. They would be
having small mobile ATMS through which they would collect and

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distribute money. The accounts would be maintained in a regular
branch of respective banks. It is expected the entire six-lakh villages of
the country would be covered by March 2013.

The financial inclusion scheme was initiated around

four years ago. Meena said the project was now being taken up on a full
swing. The government had also set a target to open 5,000 bank
branches each year. However, even these would not be enough to cover
each and every village and banking correspondents would still be
needed. "It is strange that number of people covered by any kind
banking service is much lower than those using cell phones. There are
70 crores cell phones in country while only 40 crores individuals have a
bank account," said the minister.

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 CHAPTER 3

CUSTOMER

3.1. MEANING OF CUSTOMER

Customer is a person who buys goods from a shop. A customer buys

because he wants to satisfy a need. If a customer is to be services
properly, one must be aware of his needs and the factors influencing his
behavior. Logically, the ingredients of buying would appear to be:

 Awareness of a need to be satisfied

 Desire to fulfill that need
 Search for alternatives that would meet his requirements
 Evaluate the alternatives
 Choose the best

But every decision is not based on rationally alone. Buying decisions

are often based on individual preferences, perception, values or
emotions. All the customers are not the same, there are some factors
which influences customer behavior.

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3.2. FACTOR WHICH INFLUENCES CUSTOMER BEHAVIOR

 Needs are not uniform

Hunger is a commonly felt need which can be satisfied by consuming
food. However, the amount and type of food would vary with
individuals. The same principle applies to most other wants too.

 Awareness of needs
People may realize certain needs only when it is practically farced on
them. The need for proper and timely food and rest, is well known but
is taken seriously only when some forces them to observe some
regulations.

 Creation of needs
It is possible to create needs. Examples- tea, toothpaste, detergents etc.
In all these cases a need had to be created.

 Availability
Easy availability is another important factor. By making things easily
available, it is possible to create needs or in any case satisfy perceived
needs.

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  Cost and finance
This is a very important aspect. If the need for say, a vaccumiser is felt
but if the price is considered to be high, there will be no market for it.
This is precisely what has happened to this product. Free availability of
finance helps in boosting demand. The demand for vehicles in the
recent years, in India, has been triggered off to a great extent by easy
availability of finance.

 Search for alternatives

This would depend greatly on the type of product. Purchase a color TV
may be a deeply investigated affair, the decision being influenced by
individual perception, cost, opinions of peers etc. but opening of a
saving bank account may be entirely dictated by proximity of the bank
or some similar factor and not much searching of alternatives may carry
out.

3.3. HOW TO HANDLE SOPHISTICATED CUSTOMER

A difficult customer is a dark cloud with a silver

lining. He is your golden opportunity for providing your mettle as sales
person. Win him over and you have sharpened your technique of
satisfying customers and getting your business.

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 Good insurers consider every lost insured a disaster.
They from and get prepared to avoid similar disasters. If an insured or a
client is hard to get, all the more glory goes with getting it. Selling is a
noble profession because it satisfies the need of a buyer just as doctor
cures a patient. Selling may be applied as common sense, but it will
need a good deal of training common sense and making practical use of
it. A sales call, which is put off till tomorrow is usually never made. Do
it now. Close the sale otherwise we are just wasting our time and
working for the competition. Work systematically and for the orders.
Nothing will be sold if all possible objections must first be overcome.

Handle a difficult customer with and sympathy put

yourself in his shoes and sees where it pinches. Then mend it. Remove
the limitation to make him happy. See him walk out a smile on his face.
And you may rest assured; he will get a 100 more customers.

Provides the customer who actually needs. He is your

profit everything is overhead. A customer is the only goose that lays
down eggs every day and forever. So care for him and so the best
possible service and reap a golden harvest in bumper profit.

Salespersons do a fine of prospecting and

establishing the initial contact. View every objection as an opportunity
for telling more about your product. Do not beg for the order. Be nice

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and firm to your product. Tell more and more about your product. The
customer will not hesitate for it and that is the customer’s signature on
the bottom line.

Selling is as the battlefield represented by a

chessboard where you have the bishops, the knights and the pawns
combating each other. The one who gains the upper heads is the one
who pre- empts the move of his opponents. One has to be vigilant and
make a continuous effort at forecasting each possible alternate strategy
of one’s competition and chalk one’s own strategy accordingly. There
is plenty of business in the market places. It can be yours if you reach
out to get it with new creative and innovation method to excel your
competitor friends, out selling them in the process.

There is no indispensable man. Encourage people to

suggest possible solution. Treat people like winners. All experiences
are opportunities to learn and grow. Selling insurance product is a
triangle of insured, insurer and salesperson i.e. development officer,
broker of agent. Each one must see his own angle and the angles of
others too and with to maximizing profits in the long run. One must
adjust one’s own angle accordingly. It is safe to be flexible enough to
see other viewpoints. Sales always depend on salesperson’s persistence.

A lot goes into the making a useful quality product.

Your customer knows it. He is paying a good price for something of

25
lasting value. Every customer is one- man advertising agency. Don’t
ever lure him with a low price and deceive him with a low quality
product, you will loose both customer and your goodwill forever.

3.4. COMPETITION AND CUSTOMER

The driving force behind the record growth of the

insurance is the increasing demand for specialized covers by customers.
The customer profit is also changing with the introduction of a large
number of private participants, divergent intermediaries such as agents,
brokers, corporate agents and Bancassurance partners. With increasing
buying capacity, asset procurement has set the trend for increasing
demand to protect assets against eventualities, including natural
calamities.

Other major changes in the liberalized non- life

market leading to the current trend in customer expectations are due to
the awareness created about the need for insurance through advertising
and introduction of training and agency regulation.

Insurance has become a highly competitive industry.

While it is still growing and it may be premature to comment on the
success rate, it is encouraging to note that the industry has got off a

26
healthy start. However, it is yet to make huge profits, with only two of
the eight private players managing a small net profit last years, business
indicators all point to the potential for better performance with time.

Competition has become an essential ingredient in

this scenario with guaranteed benefits to the customer and the society.
It is evident that the customer has a wider menu to choose from and
customer service benchmarks have begun to improve because of
competitive pressures. Even for companies, it is beneficial to have
others sharing the responsibility of increasing awareness, initiating
policy changes and forcing insurers to recognizing some risks in
venturing into newer market areas and investing in people.

The industry on other hand, has to deal with

customers who know what they want and are more demanding in terms
of better service and speeder responses. Alongside the advent of new
distribution channels and payment mechanisms, customer awareness is
expected to improve further.

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 CHAPTER 4
SERVICE

4.1. MEANING OF SERVICE

According to the Philip Kotler and Bloom defined

service as “any activity or benefits that is essentially tangible and does
not result in the ownership of anything. Its production may or may not
be tied to a physical product”.

According to the Gronoose “a service is an activity or

services of activities of more or less intangible nature that normally, not
necessarily take place in interactions between customer and service
employees and/ or physical resources or goods or system of service
provider, which are provider as solution to customer problem”.

In India, the insurance business started in the

beginning of the 19th century. India is now recognized as a faster
emerging market for insurance. Earlier there was monopoly of LIFE
INSURANCE CORPORATION (LIC), but now due to LPG many
foreign companies established their branches in India looking at the
business prospects. The Indian insurance market is expected to be $ 25
billion in 2010 on an assumption of 9.7% real annual growth in GDP.

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With the passing of the IRDA in 2000, the insurance market in India
has opened the private sectors. As a result, as many as 34 insurance
companies entered the market, in collaboration with foreign by the end
of 2002-03.

4.2. CHARACTERISTICS OF “SERVICE”

 Insurance is a service
A service is performed not produced. These are
people oriented activities by their nature, service. They are difficult to
observe, measure and classify. There are some distinguishing
characteristics, which set it apart from goods.

 Intangibility
Unlike goods, which tangible in the sense that they
have physical dimensions and attributes and can be seen, felt are not
objectively measurable. The courtesy shown be an airhostess can be felt
and measured only by a customer’s evaluation of good or bad.

29
  Inseparability
Production and consumption of service cannot be
separated unlike in a physical item, which is produced in a factor,
bought in a shop and used in the convenience. But a service like a
waiter’s behavior is immediate, in the presence of the customer. That’s
what is felt by the customer- not his behavior before or after or
elsewhere.

 Perishability
Unlike physical goods, which could be stored for
long periods of time, services perish if not used. An advertisement, if
not seen when beamed, is lost forever.

 Ownership
In service, ownership does not pass from seller to
buyer. The buyer only acquires the right to certain benefits of what the
seller offers, like the use of hotels rooms.

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4.3. SUCCESS STRATEGY IN CUSTOMER SERVICE

A change from a seller’s market to a buyer’s market

is attitude to the age to “the customer is the king” has firmly arrived. A
complaint involving a famous fast food chain is quite popular in the
US. One customer ordered coffee and placed it on her lap while driving
the car. As she quickly changed the direction of the car, the hot coffee
spilled on her thigh. She sued the company and the fast food company
paid for the compensation. What was the basis of her casa? She
complained that the fast food company was not responsible enough to
tell her that the coffee was so hot that it would burn her. Whether it was
justified, it does not matter, the issue is that the customer had a
complaint and the company had to make sure it listed number matter
what the cost. Even though the company had to shell out the huge
amount of money, it made sure that rest of its customer knew that they
are cared. The result of this any coffee houses in America by law are
required to mention “CAUTION HOT” on their mugs.

Competition keeps companies on their toes and gives

the customer had better service and in some cases better prices for
comparative products. In the era of competition, a successful
organization is differentiated on the basis of service quality and the

31
value creation accorded to the customer. Customer satisfaction is
cutting edge in a competitive scenario.
Customer satisfaction does not mean giving to
customer what we think they want. It means giving to customer what
they really want and will benefit them. Any service that comes
automatically is more satisfying. When buying provisions, if the
beautiful plastic carry bag is given only after asking for it, there is
number satisfaction. Without being asked, it may produce smile.
Service by its very nature is difficult to observe, measure classify and
standardized. A service is intangible yet provides satisfaction.

Customer service is primarily composed of two fold

– personal and procedural aspect. The personal side comprises of the
organization’s interaction with customers and the procedural aspect
explains the process of delivery of the product or service to the
customer.

4.4. SUPPORT FROM VARIOUS AGENCIES

I. BROKERS
There is also the system of brokers in some countries,
who canvass business and place the same with insurers, on terms that

32
are standard or even negotiated. Negotiation of terms will be necessary,
if the needs of the proposer are unique and not met by the benefits
under the standard plans of insurance. A broker usually does business
for than one insurance company. He collects commission from the
insurer with whom the business is placed and does not charge the
prospect.

In India however, till the beginning of the year 2002,

the system of brokers was not permitted. The IRDA has powers to
review the law in these regards. It has since issued Regulations
regarding the operations of brokers. Brokers have to obtain licences
from the government in order to be able to procure business and receive
commission therefore.

II. AGENT

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 The agent is the main intermediary between the
customers and the insurer. The customer-agent link is stronger than the
agent-company link, which in turn, is than the customer-company link.
Customer loyalty to the insurer depends on how strong the agent’s link
with the customer is. A death claim provides a tremendous opportunity
to strengthen this link. The agent is expected to keep in constant touch
with his policyholders to become aware of the changes in his situation
including marriages, death of relatives, release of mortgages. Anyone
of them may necessitate some changes like title to policy money or
more insurance. The contact conveys a message that the agent cares foe
the policyholder and the family. An agent who is seen only at the time
the policy was being bought, is likely to be perceived as selfish, not
concerned about the policyholder’s interest and therefore, not believed.
The agent’s show of concern could also be interpreted as not genuine
and therefore, his promises not very dependable.

 Training of Agents

For professional orientation, it is necessary for our

agents to have a basic & scientific knowledge of life insurance and life
insurance selling. Corporation has recognized, since its inception, the
importance of imparting training to its agents with a view to equip them
with necessary know-how of the profession and attain proficiency in
selling techniques.

34
 In order to ensure that candidates, who are genuinely
interested in the agency work, are inducted in this profession, the
corporation has introduced the concept of “Pre-recruitment
Orientation”. A small booklet entitled “seven steps to success”
specially prepared for this purpose is supplied to every prospective
agent. He is expected to study this book with the help of Development
Officer and the Officer-in-charge of the branch is required to select the
candidate only after satisfying himself that the candidates has aptitude
for selling and has acquired some rudimentary knowledge about life
insurance.

Keeping in tune with latest methodology in the field

of education, corporation has adopted “Programmed Learning Method”
for imparting training to new agents. Training Kit comprising of
following 9 books/ registers (inclusive of this manual) is supplied to
every agent at subsidized cost:

Manual of Agents
Programmed Learning Text Books.
Get the rules working for you profitably.
Servicing Manual for Agents.
5) Programmed Manual for calculation of Loan and Surrender
Values.

35
Agents Policy cum Commission Register.
Book of Data Sheets.
Prospecting Guide.
True Life Insurance Stories.

Initial training by Programmed Learning Method is imparted to new

agents by Development Officers with the help of Branch Officials. In
every Division , Corporation has appointed one or more instructors (in
the rank of BM or ABM) to look after training work. They impart
advance training to the absorbed agents. Confirmed new agents are also
induced to undergo such advance training with a view to improve their
proficiency in selling.

 After Sales Service: The Agent’s Role

The first services which contribute to a policy holder’s appreciation of

his insurance are those which are performed at the time his proposal is
steered to completion viz.

1) Selling the right policy i.e. the policy that correctly answers the
individual’s needs and circumstances;
2) Selling the right policy i.e. explaining its benefits in such a way that
the policyholder would consider it necessary to maintain the policy.

36
3) Inculcating the habit of saving i.e. ensuring that the policyholder
saves regularly from his income so that he has the amount necessary to
pay the premium readily available in cash when the premium falls due.

The agent’s responsibilities to the policyholder are

not over with the closing of the sale. It is essential that the sale be
followed with good after sales service and regular contact with the
policyholder.

Life insurance salesperson, unlike other salesperson,

receives renewal commission on their past business. Renewal
commission is not a gift for service already rendered. Old policies need
to be serviced from year to year and renewal commission is paid for
continued service the life insurance salesperson is expected to render to
the policyholder.

As per Regulation 10 of L.I.C.(Agents), Regulations

1972, in case of a lapsed policy which can be revived after medical
examination only, if the concerned agent is given notice in writing to
effect the revival of the policy within specified period (not less than
one month from the date of receipt by him of such notice) and the
policy is not so revived, corporation can pay commission at up to half
the usual rate, to another agent who effects revival of the policy on and
after revival.

37
 The most important service that the agent is expected
to render immediately after the issue of a policy is in respect of
admission of age, if age has not been admitted, and the appointment of
a nominee or assignee. The agent can render after-sales service in other
matter as well, namely, alterations in the policy contract, arranging for
policy loans, conservations of policies, revival of lapsed policies,
additional insurance and finally, the settlement of claims. Instructions
on all these aspects of servicing are given in the servicing manual for
agents. Agents are advised to study them carefully.

The book gives guidelines for the agents to give

effective service to policy holders. This is written mostly to help our
agents to know correctly and clearly the Corporation’s practices and
rules to various aspects which the policyholders may have to face
during the term of their policies. The manual will also acquaint the field
force with the different requirements of the Corporation in the matter of
revival, loans, Surrenders, Settlements of Claims, Age Association,
Assignment, Nomination, Paid up Assurances, the Regulations and
MWP Act policies etc.

III. CONSUMERISM

38
 In the past several decades, a social movement has
arisen to ensure that the voice of the customer is heard and responded
to. This has become know as consumerism and refers to policies and
activities designed to protect interest and right of consumers.

Four consumer rights have been accepted as basic-

The right to safety
The right to be informed
The right to choose
The right to be heard

Consumerism arises because of the failure of business or other

organizations in the exchange relationship, to meet and respond to
legitimate consumer demands.

IV. CONSUMERISM IN INSURANCE

Policyholders are consumers within the purview of the Consumer

Protection Act, 1986 therefore they acquire the rights-

To be protected against the marketing of goods which are hazardous to

life and property
To be informed about the quality, quantity, potency, purity, standard of
goods, so as to protect the consumer against unfair trade practices.

39
To be heard and to be assured that their interests will receive the
consideration at appropriate time.
To seek redress against unfair trade practices or unscrupulous
exploitation of consumers.
To consumer education.

The Consumer Protection Act aims at the better

protection of the interest of the consumers by way of settlement of
consumers’ disputes and matters connected. The Redressal agencies for
consumer disputes are quasi-judicial in nature, which do not follow
strictly the rules of the civil procedure code but try to render natural
justice. They award compensation for deficiency in services,
commensurate with the loss sustained.
The majority of disputes relating to insurance arise out of

 Delay in settlement of claims

 Non-settlement or repudiation of claims
 Amount of claim settled
 Policy terms, conditions etc.

V. DIRECT SELLING

40
 Throughout the years, insurance has been sold mainly
through agents. As part of the strategies to reduce costs, insurers have
experimented with alternate method of selling. One of them is direct
marketing, trying to get the prospect to approach the insurer directly to
seek insurance. In various other fields of sales, direct marketing has
succeeded to bring down the costs, by eliminating the intermediary.
Eureka Forbes does not able to supply goods to their members at
cheaper rates by directly establishing contact with manufacturers. Big
retailers have also done the same.

The scope for such arrangements in insurance is being

explored. Through the Internet, it is possible for any prospect to access
information about the various plans and premium rates on offer from
different insurers. He can also calculate the premium that he will have
to pay. Efforts are being made do design policies that need practically
to underwrite and can be sold like commodities. Insurers are keen to
take advantage of the new technology available, but would like tread
cautiously.

VI. THE DISTRIBUTION CHANNEL

A distribution channel is the route by which the

product prepared by the producer reaches the ultimate consumer. The
distribution bridges the distance between the producer and consumer.

41
In case of goods, the product manufactured in the factory passes
through the wholesalers, stockiest and retailers, before it reaches the
consumer. In case of insurance, the agent is primary components of the
distribution channel. He is the equivalent of the retailer. The supervisor
of agents, by whatever name called, is an important part, because it is
he who, by creating and training agents, makes the channel effective.
New agents widen the channel.
Equally important would be the other intermediaries,
like brokers and insurance consultants. Some life insurers are trying to
eliminate intermediaries to save costs. Direct selling in one such
attempt. This is increasing in foreign countries. In India, people by and
large know about life insurance but still have a lot of wrong notions
about it. Personal contracts by agents may continue to be necessary for
quite some time.
Another method being attempted is the use of the
extensive network of branches of banks. The customers of both banks
and life insurers are practically from the same segment of population.
Through the same contract, the prospect can be helped to arrange for
both bank deposits and life insurance. There would be saving in
infrastructure costs and overheads. New insurers find this an easy way
to access vast areas. It may be possible to develop composite products
having the elements of both life insurance and banking. These have to
develop.

42
VII. ADVERTISEMENT

Advertisements are effective due to following reason

 As reminders to intimate change of address, pay premium, make
nominations etc.
 As information on bonus declaration, special revival schemes,
concessions, new plans etc.
 To build corporate image as financially strong, as responsible
social citizen etc.

The Regulation framed by the IRDA has made some stipulations about
advertisements by insurers as well as by intermediaries like agents.
These stipulations apply to all messages in the print and electronic
media, hoardings, Internet, leaflets, business cards etc. that urge others
to buy life insurance. These stipulations state that-
 Claims made about the benefits should not be beyond the
ability of the policy to deliver
 Benefit described should match policy provisions
 Words or phases should not be used in such a way as to
hide minimize the cost of hazards
 Important exclusions, limitations and conditions of the
contract should be disclosed sufficiently
 Information should not be misleading

43
  Illustrations about future benefits or assumptions should
not be unrealizable in the light of current performance
 Benefits that are not guaranteed should not be referred to in
ways that they are not noticed
 There should be no implication of sponsorship, affiliation
or approval that does not exist
 There should not be any unfair or incomplete comparisons
with products of competitors

4.5. WHO CAN BUY A POLICY?

44
 Any person who has attained majority and is eligible
to enter into a valid contract can insure himself/ herself and those in
whom he/ she has insurance durable interest.
Policies can also be taken, subject to certain
conditions, on the life of one’s spouse or children. While underwriting
proposals, certain factors such as policy holder’s state of health, the
proponent’s income and other relevant factors are considered by the
Corporation.

Insurance for women

Prior to nationalization (1956), many private

companies would offer insurance to female lives with some extra
premium or on restrictive conditions. However, after nationalization of
life insurance, the terms under which life insurance is granted to female
lives have been reviewed from time- to- time.
At present, women who work and earn an income are
treated at par with men. In other cases, a restrictive clause is imposed,
only if the age of the female is up to 30 years and if she does not have
an income attracting Income Tax.

Online Payment

45
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.

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.

46
 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,
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.

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.

47
 • 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.

4.6. PAYMENT AT CASH COUNTER

At cash counter

• Premium can be paid at the cash counter of any LIC Branch

Office.
• Premium can be paid by CASH/CHEQUE/DD.
• Premium for ULIP policies can now be paid at any LIC Branch
cash counter across the country.

Alternate premium paying options

Apart from paying the premiums at the cash counters at LIC offices,
policy holders can avail these alternate ways of paying their premium
on time.

48
 • Policy holders of Andhra Pradesh can now pay their premiums at
any AP ONLINE centers. Similarly, policyholders of Madhya
Pradesh can pay premiums at MP ONLINE centers.
• Paying through ATM’s: ATM’s of Corporation bank and AXIS
bank can be used to pay premiums and this facility is completely
free for all policyholders. However, the policyholders need to
pre-register by using the bank’s website.
• ECS (Electronics Clearance System) payment: Policy holders
need to register their policies so that the required premium
amount will be deducted from their accounts as and when they
fall due.
• SMS payment: Policyholders who are having a bank account in
Corporation bank can avail this method. They should register
their mobile number at any corporation bank ATM once before
using this payment mode.

LIC Premium Payment through Alternate Channels:

Payment channels where policy is required to be registered in the data

base at LIC, receipt sent by post:

1. Electronics Clearance System (ECS):

49
This facility is presently available at 53centers. Total places where ECS
can be offered as per RBI is 64. Through ECS premium can be
collected for ULIP and Health Insurance policies also.

2. Electronic Bill Presentation and Payment (EBPP):

Premium can be paid through various banks like Citibank, HDFC,
ICICI, Federal Bank, Corporation Bank, Axis Bank, and through
service Providers – Bill Desk and Tech Process which cover almost all
other banks throughout the country. Premium can be paid through
credit card.

3. ATM:

Available with two banks Corporation Bank and Axis Bank. Through
ATM Premium can be collected for in force policies only which are
NOT with MLY/ SSS mode or under ULIP or Health Insurance Plan.

4. Portal Payment Gateway:

Online premium payment on LIC website, www.licindia.in with the

help of NET Banking facility of 33 major Banks. Premium can be paid
for ULIP policies excluding Health Insurance plan, since 01/06/2009.

50
5. Axis Bank:

Premium can be paid at any of the Branches or Extn. Counter of Axis

Bank in cash or cheques drawn on Axis Bank.

6. AP Online:

It is a joint venture between AP state government and Tata Consultancy

services. There 250 franchises in the twin cities and more than 1000
franchises across the state. This mode of payment is started from
03/12/2007.

7. Suvidha info serves Pvt. Ltd:

Premium collection through SIPL is started. It has more than 3000

collection center across the country at present.

8. Comat Payment:

Comat is a company, which enables to access the information based

services to citizens in the rural India. There are approx 775 centers
called Nemmadhi Kendra in the Karnataka and 1200 Rural Business

51
Center in other state like Haryana, Sikkim, Premium started from
28/04/2009.

9. Agents Collection payments:

This mode was stared on 18/09/2007 and restructured from 01/09/2008.

Agents authorized to collect the premium can collect the premium in
Cash or Cheque and issue a valid receipt with their signature. Premium
for ULIP policies also can be collected by the agents, however this
facility is not yet available for health insurance policies.

4.7. ANOTHER ASPECT OF CLAIMS

Admission Of Age:

Age is the main basis of calculation of premium under life insurance

policies. The following are accepted as evidence of age:

• Certified extract from Municipal or Local Body’s records made

at the time of birth.

52
 • Certificate of Baptism or Certified Extract from Family Bible, if
it contains age or date of birth.
• Certified Extract from School or College records, if age or date of
birth is stated therein.
• Certified Extract from Service Register in the case of Govt.
employees and employees of Quasi-Govt. Institutions or
• Passport issued by the Passport Authorities in India.

Payment of Premium:

• By cash, local Cheque (subject to realization of Cheque),

Demand Draft at Branch Office.
• The DD and Cheque or Money Order may be sent by post.
• You can pay your premiums at any of our Branches as 99% of
our Branches are networked.
• Many Banks do accept standing instructions to remit the
premiums. So by providing a standing instruction to your Bank to
debit your account for the premium amount and send it vide a
banker’s Cheque to LIC, on the due dates and months mentioned
on your policy bond.
• Through Internet : Payment of premiums can be made through
Internet through Service Providers viz.HDFC Bank, ICICI Bank,
Times of Money, Bill Junction, UTI Bank, Bank of Punjab,
Citibank, Corporation Bank, Federal Bank and Bill Desk.

53
 • Premium payment can also be made through ATMs of
Corporation Bank and UTI Bank.
• Premium payment can also be made through Electronic Clearing
Service (ECS) which has been launched at Mumbai, Hyderabad,
Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijay Wada,
Patna, Jaipur, Chandigarh, Trivandrum, Ahmedabad, Pune, Goa
and Nagpur, Secunderabad & Visakhapatnam. A policyholder
having an account in any Bank which is a Member of the local
Clearing House can opt for ECS debit to pay premiums. The
policyholders wishing to use this system would have to fill up a
Mandate Form available at our Branches/DO and get it certified
by the Bank. The certified Mandate Forms are to be submitted to
our BO/DO.
• Citibank Kiosks at Industrial Assurance Building, Churchgate,
New India Building, Santacruz, Jeevan Shikha Building, Borivili
are dedicated for collection of premiums through cheques.

Days Of Grace:

• Policyholder should pay the premiums on due dates. However, a

grace period of one month but not less than 30 days will be
allowed for payment of yearly/half-yearly/quarterly premiums
and 15 days for monthly premiums.

54
 • When the days of grace expire on a Sunday or a public holiday,
the premium may be paid on the following working day to keep
the policy in force.
• If the premium is not paid before the expiry of the days of grace,
the policy lapses.

Revival of Lapsed Policy:

• If the policy has lapsed, it can be revived during the life time of
the life assured, within a period of five years from the date of the
first unpaid premium but before the date of maturity subject to
certain conditions.
• The Corporation offers three convenient schemes of revival viz.,
Ordinary Revival, Special Revival and Installment Revival.
Policies can also be revived under Loan-cum-Revival and SB-
cum-Revival schemes.
• Request for revival may be made to the Branch Office servicing
the policy.

Change of Address and Transfer of Policy Records:

• The policyholder should immediately intimate the change of

his/her address to the Branch Office servicing the policy. The

55
 correct address facilitates better service and quicker settlement of
claims.
• Policy records can also be transferred from one Branch Office to
another for servicing, as requested by the policyholder.

Loss of Policy Document:

• The Policy Document is an evidence of the contract between the

Insurer and the Insured. Hence the policyholder should preserve
the Policy Bond till the contracted amount under it is settled.
• Loss of the Policy Document should be immediately intimated to
the Branch Office where it is serviced.

Loans:

• Loans are granted on policies to the extent of 90% of Surrender

Value of the policies which are in force and 85% of the Surrender
Value in case of policies which are paid-up, inclusive of the cash
value of bonus. The rate of interest charged at present is 9% p.a.
payable half-yearly.
• Loans are not granted for a period shorter than six months. The
Conditions and Privileges printed on the back of the Policy Bond
states whether a particular policy is with or without the loan
facility.

56
Relief to Policyholders:

• The Corporation generally allows concessions on payment of

premiums, settlement of claims, issue of duplicate policies, etc
when the policyholder are affected by natural calamities such as
droughts, cyclones, floods, earthquakes, etc.

Nomination:

• Nomination is a right conferred on the holder of a Policy of Life

Assurance on his own life to appoint a person/s to receive policy
moneys in the event of the policy becoming a claim by the
assured’s death. The Nominee does not get any other benefit
except to receive the policy moneys on the death of the Life
Assured. A nomination may be changed or cancelled by the life
assured whenever he likes without the consent of the Nominee.
Ensure nomination exists in the policy for easy settlement of
claims.

Death Claims:

• If the life assured dies during the term of the policy, death claim
arises. The death of the policyholder should be immediately

57
 intimated in writing to the Branch Office where the policy is
serviced along with the following particulars:
1. The No./s of the policy/ies
2. The name of the policyholder
3. Death Certificate issued by concerned Authority
4. The date of death
5. The cause of death and
6. Claimant’s relationship with the deceased
• On receipt of the intimation of death, necessary claim forms are
sent by the Branch Office for completion along with instructions
regarding the procedure to be followed by the claimant.
• The claims which have arisen after a period of three years are
treated as non-early claims and settled within 30 days from the
date of receipt of all requirements.
• The claims that have arisen within a period of two years from the
date of commencement of the policy, are treated as early claims
and investigation is compulsory in such cases.
• The claim is usually payable to the nominee/assignee or the legal
heirs, as the case may be. However, if the deceased policyholder
has not nominated/assigned the policy or if he/she has not made a
suitable provision regarding the policy moneys by way of a Will,
the claim is payable to the holder of a Succession Certificate or
some such evidence of title from a Court of Law.
• The Corporation grants claims concessions under certain Plans
whereby payment of full sum assured is made, subject to the

58
 deduction of unpaid premiums with interest till the date of death
and unpaid premiums falling due before the next anniversary of
the policy, in the event of the death of the life assured within a
period of six months or one year from the date of the first unpaid
premium, provided premiums have been paid for at least three
years and five years respectively.

Claim Review Committee:

The Corporation settles a large number of Death Claims every year.
Only in case of fraudulent suppression of material information is the
liability repudiated. This is to ensure that claims are not paid to
fraudulent persons at the cost of honest policyholders. The number
of Death Claims repudiated is, however, very small. Even in these
cases, an opportunity is given to the claimant to make a
representation for consideration by the Review Committees of the
Zonal office and the Central Office. As a result of such review,
depending on the merits of each case, appropriate decisions are
taken. The Claims Review Committees of the Central and Zonal
Offices have among their Members, a retired High Court/District
Court Judge. This has helped providing transparency and confidence
in our operations and has resulted in greater satisfaction among
claimants, policyholders and public.

59
Initiatives in Policy Servicing Areas:

• All 2048 Branches of LIC are fully computerized covering all

policy servicing aspects to give prompt computerized services
from new policy introduction, acceptance of renewal premium,
revivals, loans, etc to final claims settlement.
• Green Channel facility has been introduced for the speedy
completion of proposals.
• Payment of premiums can be made through internet through
service providers, viz., HDFC Bank, ICICI Bank, Times of
money, Bill Junction, UTI Bank, Bank of Punjab, Citi Bank,
Corporation Bank, Federal Bank and Bill desk.

If your policy is lost:

Kindly make a search before concluding that you

have lost the policy bond. Look for the same in your residence,
among your investment papers, at your office and even with your
agent to whom you might have entrusted the document for some
reason.

60
 It could be even pledged with LIC/ any other
financial institutions for availing a loan by you. LIC retains the
policy bond when you go in for a loan against the policy. Make sure
that the documents your searching is not one that has assigned to
LIC, or to another financial institution.

If the policy bond is partially destroyed due to natural

calamities like fire, flood etc., the remaining portion may be
returned as evidence of loss of policy to LIC, while applying for a
duplicate policy.

Incase, you are sure that the policy bond is

untraceable due to unknown causes, there is a simple procedure to
comply with. Apply for the duplicate policy at the branch.

61
 CONCLUSION

Previously insurance obtains a policy on life through

the agent. The horizon has widened today offering coverage to life
insurance including different body parts. Competition amongst insurer
has brought a new trend to attain as well as retain customer by all
means. This has brought about some unethical practices in the business,
which is not a healthy sign. But these competition has proved to be
better bargain for the customer in terms of quality of service.
Competition is an ingredient of open markets.
In present scenario all companies are trying to retain
the customer as well as to have new customer and I find that LIC is best
among all because they have many branches, easily accessible, familiar
with local people and so on. But this doesn’t mean that they are
providing services upon the mark so all- insurance companies have to
work harder to retain and to have new customer including LIC. They
should go for new strategies and planning. They should achieve the
customer loyalty and give customer satisfaction.

Therefore, bottom line is “CUSTOMER IS KING, TREAT THEM AS IT

INDICATES”

62
 BIBLOGRAPHY And WIBLOGRAPHY

Website
www.icici.com

FREQUENTLY ASKED QUESTIONS

1) What are the benefits of paying your LIC premiums through net-
banking/phone-banking?

2) What are the charges to be paid for availing this facility?

3) Which organizations are authorized to collect LIC premiums thru

their net-banking/phone-banking facility?

4) How does LIC acknowledge the registered policy details?

5) When can I pay the insurance premiums?

63
 6) How to pay the insurance premiums through the banks?

7) How will the payment get accounted under the policy?

8) What are the important points to be noted for availing this
payment facility?

64