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MAHMUL 02922/2011
Hi-TECH RESEARCH ANALYSIS

Half yearly Research Journal

ISSN 2231- 6671
Vol. I, Issue : I, Feb. 2011 to July. 2011

20

4

RECENT TRENDS IN MARKETING STRATEGY OF LIC OF INDIA
S.J. Kulkarni
Dept. of Commerce, Rajarshi Shahu College, Latur, Dist. Latur.

Dr. P. N. Sagar
Voice Principal, Rajarshi Shahu College, Latur, Dist. Latur.

Research Paper -Commerce
Life Insurance Corporation of India is a public sector giant in the life insurance industry in India. For almost five decades LIC is monolithic company in the life insurance sector. Since nationalization LIC has built up a vast network of 2048 branches, 109 divisions, 8 zonal offices and 1004 satellite offices spread all over the country. The Life Insurance Corporation of India also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. With its multinational presence, it is associated with joint venture abroad in field of insurance namely, Ken India Assurance Company Limited, Nairobi, United Oriental Assurance Company Limited, Kualalumpur and LIC (international) E.C.Bahrain. Insurance Sector Reforms : The Insurance sector in India has completed a full circle from being an open competitive market to nationalization and back to a liberalized market again. From 2000, many private players entered into insurance industry with effect of privatization of insurance sector as per R.M.Malhotra Commission’s recommendations and formation of IRDA. Objectives of the Study : 1. To know market share of LIC of India in Life insurance business. 2. To know new market strategy adopted by LIC of India to increase business volume.

MAHMUL 02922/2011
Hi-TECH RESEARCH ANALYSIS

Half yearly Research Journal

ISSN 2231- 6671
Vol. I, Issue : I, Feb. 2011 to July. 2011

21

Hypothesis of the Study : Despite of entry of private players LIC plays a dominant role in life insurance business in India. Research Methodology : The research methodology of this study is related to evolutionary research method. Basically, secondary data is used for the study. The secondary data consisted of published annual reports for the concerned years of Life Insurance Corporation of India, website of LIC, website of IRDA, Journal, Magazines of LIC of India, reference books, etc. Need of Research Study : The insurance sector in India has been completed a full circle from privatization to nationalization and again privatization. LIC of India plays an important role in the life insurance sector of India. Since economic reforms, the insurance sector is also changing. These changes will help both the urban and rural consumers. Present Scenario of Indian Life Insurance Market : As many new players have joined the insurance industry posing a tough competition to LIC. LIC has been reorganizing itself in order to perform better than the new players. The performance of Life Insurance Corporation and private players has been shown for the year 2008-09 in the figure No. 1. Indian Life Insurance Market Share (2008-09) 1.05 1.23 2.06 2.5 2.22 3.25 4.79 5.06

LICI ICICI Bajaj SBI Reliance

6.92

HDFC Birla Tata Kotak
70.92

Others

MAHMUL 02922/2011
Hi-TECH RESEARCH ANALYSIS

Half yearly Research Journal

ISSN 2231- 6671
Vol. I, Issue : I, Feb. 2011 to July. 2011

22

At present there are 21 private life insurers operating in the Indian Life Insurance market along with LIC of India, at the end of the financial year 2008-09. The total volume of premium reached to Rs. 221,791 crore in 2008-09 from Rs. 24,630 core in the year 1999-2000 which is little more than 800%. Private life insurers are slowly gaining the momentum to penetrate the market with their new products, services and the global knowledge of expertise in doing life business. It can be observed from their growing market share statistics which shows (fig. 1) nearly 30% of the market are in their hands at the end of 2008-09 financial year. Most important aspect is that acceptability...
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