LIC is India's largest life insurer with over 290 million policyholders. It has a 76% market share in number of policies issued due to its prompt claim settlement, resolving 100% of complaints in 2016. The document discusses LIC's history and nationalization in 1956, as well as its claim settlement processes for death claims, maturity claims, and money back policies. It shows that LIC's high claim settlement ratio of 97.73% in 2012-2013 positively impacted its market share and policy sales compared to private insurers. Prompt claim resolution is important for customer satisfaction and sales.

1. INTRODUCTION
• Life insurance- An agreement
• Protection against economical loss arising due to unexpected event
• Claim settlement is an integral part of insurance business
• Claim is the right of insured to receive the amount

2. • LIC is the only insurance company in India which is owned by
govt.
• During FY 2016 LIC resolved 100% of complaints.
• It is due to this prompt claim settlement LIC is leading in a
great success.

3. Life Insurance
• Life insurance can be termed as an agreement between policy owner and the
insurer, where the insurer for a consideration agrees to pay a sum of money upon
the occurrence of the insured individual’s death or other event, such as terminal
illness, critical illness or maturity of the policy.

4. History of life insurance
• Insurance in India can be traced back to the Vedas. For instance, yogakshema, the
name of Life Insurance Corporation of India’s corporate headquarters, is derived
from the Rig Veda.
• Bombay Mutual Assurance Society, the first Indian life assurance society was
formed in 1870.
• Other companies like Oriental, Bharat and Empire of India were also setup in the
1870-90s.

5. • It was during the swadeshi movement in the early 20th century
that insurance witnessed a big boom in India with several more
companies being setup.
• By the mid-1950s, there were around 170 insurance companies
and 80provident fund societies in the country’s life insurance
scene. However, in the absence of regulatory systems, scams
and irregularities were prevalent in most of these companies.

6. • As a result, the government decided to nationalise the life
insurance business in India. The Life Insurance Corporation of
India was set up in 1956 to take over around 250 life insurance
companies.
• For years thereafter, insurance remained a monopoly of the
public sector. The sector was finally opened up to private
players in 2001
• The Insurance Regulatory & Development Authority, an
autonomous insurance regulator setup in 2000,has extensive
powers to oversee the insurance business and regulate in a
manner that will safeguard the interests of the insured.

7. LIFE INSURANCE
CORPORATION OF INDIA
• LIC of India is one of India’s leading financial institutions
headquartered in Mumbai, offering complete financial solutions that
cover every sphere of life.
• LIC is the largest life insurance company in India with an asset value
of $440 billion.
• Life Insurance Corporation of India (LIC) was created on 1st
September 1956, after the parliament of India passed the Life
Insurance Corporation act on the 19th of June 1956.
• LIC offers a variety of insurance products to its customer such as
insurance plans, pension plans, Unit Linked Plans, group schemes as
well as child insurance plans.

8. • LIC had total life fund of Rs 28.3 trillion.
• It has 290 million policy holders.
• Staff strength is of 1.11 lakh employees
• As on Nov 2019, it has a market share of 76.28% in number of policies and 71%
in first year premium.
• Today LIC functions with 2048 fully computerized branch offices, 8 zonal offices,
around 113 divisional offices, 2,048 branches and 1408 satellite offices and the
Central Office.

9. Claim settlement process by LIC.

10. Death claim
• This claim is payable in both the conditions :
when policy's premium is paid up to date &
where the death occurs within the policy period.
• Following documents are required :
o Claim form A-duly filled and signed by the nominee.
o Certified extract of death register.
o Original policy document.

11. Maturity claim
• Amount is payable at the end of the policy period(Endowment policy).
• At least 2 months before the due date of payment the branch providing
the policy sends the policyholder a letter informing the date on which
the policy amount is payable.
• Discharged form duly filled is then needed to be returned along with
all policy document.
• Cheque is sent by post before the due date.

12. In case of Money Back Policy:
• This policy gives periodical amount to the policyholders.
• Amount payable is less than Rs.60000, cheques are released with out
calling for the discharge receipt / policy document.
• In case of higher amounts discharge receipt/policy document is
mandatory.

14. Impact of Claim Settlement On Sales
• claim settlement is the ratio of the number of claims settled to the total
number of claims filed in a particular fiscal year.
• LIC has increased to 97.73 during the year 2012-2013 when compared to
97.42 percent during the previous year.
• Due it’s high ratio of claim settlement LIC enjoy the major chunk of the market
(Insurance)

15. IRDAAnnual Report 2012-2013
Si No. Insurer No. Of Claims Filed No. of Claims Paid Claim Settlement
Ratio
1 LIC 750576 733545 97.73
2 ICICI Prudential 14928 14393 96.29
3 HDFC Standard 6253 5988 95.76
4 Max Life 9051 8531 94.25
5 SBI Life 13426 12676 94.14

16. S.No. Insurer Total Life Insurance
Premium Earned (in
crores)
1 LIC 208803.58
2 ICICI Prudential 13538.24
3 HDFC Standard 11322.68
4 SBI Life 10450.03
5 Bajaj Allianz 6892.70
Total Life Insurance Premium Earned(2012-13)

17. Number of Policies Sold(2012-13)
SI. No. Insurer Total Individual Polices
1 LIC 36755451
2 Bajaj Allianz 1025739
3 ICICI Prudential 959958
4 SBI Life 888670
5 Reliance 762532

19. CONCLUSION
• Claim settlement -the most important factor
• Sales of insurance policies- biggest source of revenue
• If not properly settled ,will affect its sales. After the opening up of life insurance
market,
• LIC of India still strongly holds major market due to
prompt claim settlement trust and adaptability.
• The study shows the positive relationship between Sales
• and Claim Settlement.
• Better Claim settlement leads to better sales figure and customer relation. And LIC
is proof of this.

21. THANK YOU!!!