«PEOPLE : PROCESS : PERFORMANCE g§JRZ : g§gmYZ : g§nmXZ PROFILE 2015 The Life Insurance Corporation of India came into existence on 1st September, ...»
PEOPLE : PROCESS : PERFORMANCE
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The Life Insurance Corporation of India came into existence on 1st September, 1956, with the objective
of spreading life insurance 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.
From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. 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. In its 58 years of existence, LIC has grown from strength to strength be its customer base, agency network, branch office network, new business premium and has a significant role in spreading life insurance widely across the country.
OUR ORGANIZATIONAL STRUCTURE AND HUMAN RESOURCES AS ON31.03.2015 Zonal Offices 8 Divisional Offices 113 Branch Offices 2048 Satellite Offices 1381 Mini Offices 1245 Employees 1,17,453 Agents 11,63,604 NEW BUSINESS DURING THE YEAR 2014-15 First Year Premium Policies (In lacs) Income ( in crore) Composite 201.71* 78302.64* Market Share (%) 77.85 69.21 *Excluding Business procured under Varishtha Pension Bima Yojna.
VARISHTA PENSION BIMA YOJANAPolicies 138434 FPI ( in crore) 3613.17 PROFILE 2015 BUSINESS IN FORCE AS ON 31.03.2015 ( in Crore) Sum Assured /NCO ( in Crore) Individual Policies 29.01 3610531.00 Group Policies (lives) 11.58 708450.60 OTHER PERFORMANCE PARAMETERS 01.04.2014 TO 31.03.2015 ( in crore) Total Income 407546.35 Total Premium Income 239482.77 Payment to Policyholders 146025.50 Total Life Fund 1824194.95 Total Assets 2031116.08 CLAIM SETTLEMENT PERFORMANCE 2014-15 Total Number of Claims settled 232.32 lakh Total amount of Claims paid
90458.16 Crore (including Micro Insurance and P&GS) Percentage of Maturity claims settled 99.78 Percentage of Death Claims settled 99.51 PROFILE 2015
OUR PRODUCTSAt the end of the financial year 2014-15, we have 20 products available for sale under individual business catering to the different needs of customer segments. These includes Endowment Plans, Money back Plans, Term assurance Plans, Micro insurance Plan, Health Plan and Pension Plan etc. The Plans available for sale as on 31.03.2015 are:LIC’s Jeevan Akshay VI (Plan No. 189)
2. LIC’s New Endowment Plan ( Plan No. 814 )
3. LIC’s New Jeevan Anand (Plan No. 815)
4. LIC’s New Bima Bachat (Plan No. 816)
5. LIC’s Single Premium Endowment Plan (Plan No. 817)
6. LIC’s New Jeevan Nidhi (Plan No. 818)
7. LIC’s New Jeevan Mangal (Plan No. 819)
8. LIC’s New Money Back Plan-20 years (Plan No 820)
9. LIC’s New Money Back Plan-25 years (Plan No. 821)
10. LIC's Anmol Jeevan – II (Plan No. 822)
11. LIC's Amulya Jeevan – II (Plan N No. 823)
12. LIC's e-Term (Plan No. 825 )
13. LIC's Jeevan Rakshak (Plan No. 827)
14. Varishtha Pension Bima Yojana (Plan No. 828)
15. LIC's Bhagya Lakshmi (Plan No. 829)
16. LIC's Limited Premium Endowment Plan (Plan No. 830)
17. LIC's Jeevan Sangam (Plan No. 831)
18. LIC's New Children's Money Back Plan (Plan No. 832)
19. LIC's Jeevan Lakshya (Plan No. 833)
20. LIC’s Jeevan Arogya (Plan No. 904) For details of Plans kindly visit our website www.licindia.in or Intranet site of Marketing Department, Central Office.
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer Centric Initiatives
ALTERNATE CHANNELS OF PREMIUM PAYMENT:
Premiums can be paid through various Alternate Channels for in force policies other than those under Salary Savings Scheme (SSS). For the year 2014-15, 45.56% transactions of total renewal premium and 40.12 % premium amount of the total renewal premium received was collected through Alternate
Channels. The various alternate channels for collection of premium are as under:
A. Offline payment channels:
1. Electronic Clearance System (ECS): This facility is presently available at all 90 Centres enabled by RBI for ECS. Premium for ULIP and Health Insurance (HI) policies can also be collected through this mode.
2. Direct Debit: Account holders of ICICI and Corporation Bank pan India can opt to pay premium through this mode.
3. Electronic Bill Presentation and Payment (EBPP): Premium can be paid through Corporation Bank, Citi Bank, HDFC Bank, ICICI Bank, Federal Bank, Axis Bank, LIC Credit Cards and through Service Providers – Bill Desk and Tech Process.
4. ATM: Corporation Bank, Axis Bank and ICICI Bank have enabled the facility of collecting premiums through their ATMs.
5. Automated Premium Payment System (APPS): Investors of LIC Nomura Mutual Funds can pay their LIC premium through their LICNMF Systematic Withdrawal Plan (SWP) by giving standing instructions to LICNMF.
Premium collection facility for all (excluding ULIP & Health Insurance) in-force policies other than Monthly Mode and Salary Savings Scheme is available under EBPP, APPS and through ATM.
B. Online Payment Channels:
6. Customers’ Portal Payment Gateway: Premium, inclusive of Ulip and Health insurance policies, can be paid online through LIC Website, www.licindia.in using Net Banking Facility of 50+ major Banks, VISA/ Master Credit and Debit Cards (domestic), American Express Credit cards, Rupay Debit Cards and through IMPS. A flat fee is levied as interchange fee by the Banks concerned.
7. Premium Collection through Banks: Premium can be paid at any of the Branch or Extension Counter of Corporation Bank and Axis Bank in cash or cheques drawn on the respective Bank, excluding Ulip and HI policies.
8. Premium collection through Franchisees:
• Following are the approved Franchisees (other than ULIP policies) a. APOnline : website www.aponline.gov.in b. MPOnline: website www.mponline.gov.in c. Suvidhaa Infoserve Pvt. Ltd. : Toll Free helpline number : 9223225225 d. CSC Centers through CSC e-Governance Service India Ltd: The Common Services Center(CSC) Scheme is a part of the National e-Governance Plan (NeGP).
There are more than 1.25 lac CSC centers throughout the country out of which approx 6000 have been activated for LIC Premium collection. Other collection centers also are gradually being enabled for premium collection.
• Premium can be collected only in CASH and receipts are issued instantly. No service charges are required to be paid by the policyholder.
9. Premium collection through Senior Business Associates (SBA): Selected Development officers (SBA) are authorized to collect the premium (Conventional, Ulip and Health) both in Cash and Cheque and issue receipt instantly. At present more than 2500 SBAs and 500 ASBAs (Aspiring SBAs) are enabled to collect premium. Their collection Centres are referred to as “Life Plus”.
10. Premium collection through Empowered Agents: Corporation has empowered selected Agents to collect renewal premium through their collection Centres called as “Premium Point”. At present, there are approximately 33,000 authorized Agents across the country who can collect the premium (including ULIP and HI Policies) in cash and cheque and issue receipts instantly.
11. Premium collection through Retired Employees: Selected retired LIC Employees are also authorized to collect the premium online and issue receipt instantly. At present more than 330 Retired Employees are authorized across the country who can collected premium for all policies.
12. LIC Mobile Application: Premium can be paid online using LIC Mobile application on Windows and Android phones.
PROFILE 2015 LICHELP A new initiative on Customer Reach-LICHELP has been launched recently.
SMS “LICHELP policy no” and send it to 9222492224 or 56767877 for Policy Enquiry/Product Query/Registering of complaint under your policy.
Customer Zones: Customer Zones have been conceptualized as a “ one stop resolution” for all servicing needs of Phone-in & Walk-in customers, with special emphasis on” Quality Experience” for the customer. Presently 73 Customer Zones are operational. Customers can contact these offices from
8.00 a.m. to 8.00 p.m. on Monday to Friday and from 10.00 a.m to 6.00 p.m on Saturday.
Claims settled on relaxed conditions arising out of Natural Calamities: Death claims were settled on relaxed conditions arising out of Natural calamities in the states of Andhra Pradesh, Odisha (Cyclone Hud Hud) and Jammu & Kashmir (floods).
Claims Disputes Redressal Committee (CDRC): The Corporation pioneered the initiative of introducing an internal review mechanism to give an opportunity to the claimant to appeal for review, when a claim is repudiated by the Divisional Office. When a claim is repudiated, the claimant is explicitly informed about the grounds of repudiation and that he may prefer his / her appeal to Zonal Office Claims Disputes Redressal Committee (ZO CDRC). ZO CDRC consists of senior officials of the Zonal Office and a retired District or High Court Judge. Such Committees are functioning in all our eight Zonal Offices.
In case the claimant is not satisfied with the decision of ZO CDRC and the net claim amount exceeds the amount stipulated for final decision by ZO CDRC, the claimant may prefer his / her appeal to Central Office Claims Disputes Redressal Committee (CO CDRC) for further review. CO CDRC consists of senior officials of the Central Office and a retired High Court judge. (Retired District or High Court judges are inducted in the Committees to bring in transparency in the process of review vis-à-vis the claimant.) PROFILE 2015 Grievance Redressal Machinery: Policyholders' Grievance Redressal Officers have been designated in all the offices of the Corporation, who can be approached by policyholders for redressal of their grievances, on any day but particularly on every Monday between 2.30 p.m. and 4.30 p.m. without prior appointment.
All Zonal Offices : Regional Manager (CRM) - for conventional policies Regional Manager (P&GS) : for Group insurance policies.
All Divisional Offices : Manager (CRM)
Marketing - Bancassurance & Alternate Channels We have tie-ups with 11 PSU Banks, 3 Private Banks, 1 Foreign Bank and 42 UCBs / RRBs / Co-op.
Banks under Corporate Agency agreement. These Banks procure New Business for LIC through their Branch Outlets. At present, we have about 32800 Outlets under these Banks and our efforts are to make each one of them contribute their best.
Apart from the banks, we have tie up with 85 Corporate Agents. Among the brokers, 74 were active during the financial year 2014-2015.
During the year, Corporation Bank occupied No. 1 position amongst our Bank Partners in Total First Premium with 184 Cr., followed by Central Bank of India with 163 Cr. and Bank of Maharashtra with 117 Cr. Central Bank of India occupied No. 1 position in No. of Policies with 63041 policies followed by Allahabad Bank with 55416 policies. 54 Bank Branches achieved First Premium of more than 1 Cr.
The Chief Life Insurance Advisor Scheme was introduced wef 1st April 2008. Besides Agents who are members of DM/ZM/CM/Corporate club, Retired employees and Financial Service Executives (FSE) are eligible to become Chief Life Insurance Advisors under certain conditions. There is no restriction on the number of agents that a CLIA can supervise.
During F.Y. 2014-15, the Mktg/CLIA Channel procured a new Business of 2763.07 crs FPI and 18,69,253 policies. There was de-growth of -41.18% in policies and -4.15% in FPI. In FY 2014-15 CLIA FPI Budget was achieved by 2 Zones (East Zone and East Central Zone) and 34 Divisions. The Share of CLIA Channel to total New Business of the Corporation has steadily grown from 3.06% to 9.22% in NOP and 3.12% to 9.60% in FPI since the first year of inception. The number of Branches contributing more than 10% FPI through CLIA Channel has increased from 687 in 2013-14 to 759 in 2014-15.
As on 31.3.
2015 the Mktg/CLIA Channel has on roll 31154 CLIAs with 23844 as active CLIAs. 2709 CLIAs had qualified to the various CLIA Brigades for M.Y. 2014-15. There are 138943 supervised agents on roll.
Achievement from 01-04-2014 to 31-03-2015 (Including VBPY)
DIRECT MARKETING DEPARTMENTDirect Marketing Channel was established in August, 2009 with 6 Units and 138 DSEs One of the objectives of the Channel was to create a culturally different approach to Marketing of Life Insurance products, which it has accomplished in a span of 6 years of its existence.
The Direct Marketing has successfully become a supportive Channel of LIC by creating new systems for business generation, sales process monitoring and business process with a view to reach out to untapped markets and provide improved buying experience to customers.
The Channel is driven by the values of Passion, Professionalism and Performance, as promoted through a committed professional sales force, providing excellent buying experience to customers with enhanced use of IT, especially to today’s young, tech savvy executives and High Net worth Individuals.
PROFILE 2015 The Channel is currently operating through 124 Units and 2500 DSEs as on 31.3.2015, spread across the length and breadth of the Country.
LIC Direct Marketing also has a full-fledged Call Centre at Vile Parle, Mumbai, registered with TRAI as Telemarketer and compliant with all its provisions. The Call Centre Executives ensure that all the online leads are contacted and all the customers who log in on our web site are assisted and navigated through the system seamlessly.
Achievement from 01-04-2014 to 31-03-2015 (Including VBPY)
The existing plans of Pension & Group Schemes are LIC’s New Group Superannuation Cash Accumulation Plan (UIN: 512N274V01)