ESTD – 1980

A
PROJECT REPORT
ON INSURANCE WITH SPECIAL REFERENCE TO

L.I.C. OF INDIA, SAMBALPUR

(FOR PARTIAL FULFILLMENT OF REQUIREMENTS OF CLASS XIth

EXAMINATION UNDER C.B.S.E.)

UNDER GUIDANCE OF : SUBMITTED BY :

Udipta Kumar Nayak Gudia Jalan
M.Com Class – XI Commerce
Department of Commerce Roll – 2
Madnawati Public School
 AINTHAPALI, SAMBALPUR

CERTIFICATE

This is to certify that this piece of project assignment entitling “A Project Report

on Insurance With Special Reference To L.I.C. Of India, Sambalpur “ is conducted

and prepared by Gudia Jalan, Roll No-2, Class- XI Commerce of Madnawati Public

School, Sambalpur and has been carried out under my supervision and guidance during

the session 2006-07.

This information given under this project are true and fair according to best of my

knowledge and this is an original work of the student.

Signature of Internal
Department of Commerce
Madnawati Public School,
Ainthapali, Sambalpur

DECLARATION

I Gudia Jalan, Roll No – 2, Class XI Commerce hereby declare that the information

collected for the underdone project assignment is a true and original according to best

of my knowledge and any defect over the content are to be excused as a part of the

experimental studies.

Signature of Student
 ACKNOWLEDGEMENT

I offer my sincere thanks to Mr. Udipta Kumar Nayak, M.Com, Department of

Commerce of Madnawati Public School, Ainthapali, Sambalpur not only for his able

guidance and active encouragement but also for his contribution of so much planning

and organizing the project.

I wish to express my sincere thanks to Insurance Advisor Mahesh Agrawal to teach me

about various schemes introduced in Life Insurance Corporation during the year, which

I have taken as my topic for meeting the requirements of this project report.

Finally I express my deep sense of gratitude to my loving parents and my elder sister

for their moral support and inspiration for the completion of my project work.

SUBMITTED BY :
Gudia Jalan
Class – XI Commerce
Roll – 2
 PERSONAL MEMORANDA

1. Full Name : Gudia Jalan

2. Class : XI Commerce

3. Roll No : Two (2)

4. Father’s Name : Sri Arun Kumar Jalan

5. Mother’s Name : Smt. Asha Jalan

6. Sex : Female

7. Date of Birth : 11.08.90

8. Address : Khetrajpur, Sambalpur

9. Contact No : 98611254491
2544791
 CONTENTS

SNo. Subject Page No. Remarks

01 Introduction

Objectives of Life Insurance

02
Corporation

03 Various Schemes

04 Loans and Advances

05 Premium

06 Interpretation

07 Conclusion
INTRODUCTION TO LIC :
Life Insurance Corporation of India is one of the most prominent insurance company in
India. It is the only insurance company which assures life. It has also various other
schemes which covers a whole network of all the assets, life and other schemes under
which these are insured.

There are various ways of relieving the premium by LIC to suit its customers which
ranges from the higher rich class to lower middle class the premium may also be
recovered either by cash or by cheque through any of the nationalized bank or even
through some reputed private banks so that there would always increase in the graph of
the customer of LIC by which more amount is received as premium which results in
that increase in the earnings of LIC as the premium received is the main source of
income for LIC to meet all its expenses for its smooth functioning.
OBJECTIVES 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.
 Maximums 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 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 interest 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 Objectives.
VARIOUS SCHEMES
1) Whole Life Insurance Plan :

A low cost with profits insurance plan where the sum assured is payable on the death of
the life assured, whenever it occurs or on the maturity claims after the life assured
attains age 80 years subject to certain conditions.

2) Endowment Assurance Plan :

Under this plan, the sum assured is payable along with accrued bonuses on maturity or
on death of the life assured.

3) Jeevan Anand :

This is a unique with profits plan which combines the features of the Endowment and
whole life plan. The basic sum assured plus accrued bonus is payable to the policy
holder on his survival till the end of the premium paying term. An additional sum
assured is payable to the nominee on the death of the policy holder. After the expiry of
the premium paying term, the basic sum assured plus accrued bonus is payable to the
nominee and the policy comes to an end.

4) LIC’s Anmol Jeevan :

This is a pure term assurance assurance plan for term varying from 5 to 25 years and
provides for payment to the sum assured on the death of the policy holder during the
term of the policyholder during the term of the policy. Most suited to cover risk of
outstanding housing or vehicle loans.

5) New Bima Kiran :

It provides for insurance cover at a low cost. In addition to return of premium paid this plan
provides for loyalty addition, if any, in built accident cover and a term cover after maturity. If the
policy is in full force on the date of maturity most appropriate for low to middle income groups.

6) Jeevan Mantra :

An endowment assurance plan providing for twice or thrice the sum assured payable on
the death of the life assured during the policy term.

7) Jeevan Sathi :

A double cover joint life endowment assurance plan for husband and wife.

8) Jeevan Surabhi :

A money back plan where premiums are payable for a limited period with periodical
increase in insurance cover by 50% of the basic sum assured after every five years.

9) Jeevan Bharati :

Money back plan exclusively for ladies with guaranteed additions for the first five year
and bonus thereafter with additional benefits such as female critical illness benefits and
congenial disability benefits.
 CHAPTER – IV

LOANS AND ADVANCES

At present loans are granted on unencumbered policies up to 90% of the surrendered

value under policies which are in force for the full sum assured and up to 85% of the
surrender value on policies which are paid up for a reduced sum assured. The
minimum amount for which a loan can now be granted under a policy is Rs. 150/-. The
rate of interest charged at present varies from 10.5 % to 12% per annum payable half
yearly depending upon the plan. Loans are not normally granted for a period shorter
than six months. However, if granted, interest for a minimum period of six months is
charged production of the policy documents is a must for taking a loan the branch
office servicing the policy will quote the loan value on request from the policy holder.
Certain types of policy such as policies on the lives of minors during their minority are
not entitled for a loan. The terms and conditions printed on the policy bond reveal
whether a particular policy is eligible for a loan or not.
 CHAPTER – V

Policy Sum Assured Premium No. of Years Age

Amount
Jiwan Anand 1 lac 25870 5 39
Jiwan Surabhi 1 lac 11422 15 39
Jiwan Rekha 1 lac 26636 5 39
Jiwan Bharati 1 lac 9325 15 39
Jiwan Mitra 1 lac 7872 15 39
Anmol Jiwan 1 lac 2257 5 39
New Bima Kiran 1 lac 2158 10 39
 CHAPTER – 6

From the above data, I interpret that LIC is undertaking various schemes where the
premium is being received through various installments. There is always a difference
in the amount of premium received with the difference of age.

It is also providing loans & advances under various schemes and it is charging lesser
amount of interest rates on the loans sanctioned.

LIC of India, Sambalpur branch has many customers and to undertake the increasing
customer it has also opened many branch offices where there are many agents who are
assisting the customers in opening the insurance schemes.

With all these above merits it is even suggested that LIC should also adopt more
flexible premium receiving terms so that the common man could also avail the benefit
of insurance.
 CHAPTER – 7

In today’s world, life insurance is one of the need of everybody be it child, young, old,
man and women because in bad times these life insurance helps the policy holder in a
monetary terms which acts like a backbone to the surviving life. This amount of
money encourages the person to achieve his goal in his life. In general, the people
don’t care for life insurance but the educated mass now-a-days are trying to understand
the need and the importance of life insurance they also explain the weaker section of
the society the value of life insurance.

Thus to my understanding also every person must make a life insurance because it is
not only helps in the bad times but it is also a source of savings.

“Insure t oday for a better tomorrow.”