IS LIC FACING COMPETITION FROM THE VARIOUS COS IN PRIVATE SECTOR

LIC has never been in competition nor now is. It stands nowhere in competition. It always enjoyed fruits of its govt created monopoly, so far, and is still roaring on it. It is loosing its business share to the private players gradually and who knows what would be its position a few years later. It is surviving on its image as government company which the LIC men are publicising widely out of their frustration and lack of skills. Moreover the rebating is the only weapon of selling with LIC men. The people are now realising the fact and are preferring to private players.

LIC, MTNL or Maruti,  all of these enjoyed complete monopoly till a decade ago. with competition, they will hv to adjust to changing realities. i b;live majority Indians, if given a choice, will go for a sarkari brands  b'cause they r more dependable. take care of the customers and their needs, and they will stay with u, always

I think LIC has always been facing competition ever since it was established; today only the face of the competition has changed. Before the entry of Pvt Life Insurance companies in India, LIC had been facing competition from PPF, NSC, UTI, Credit societies etc. It may sound like comparing mangoes with apples but the fact remains that in a country like India, Insurance is yet treated as a savings product and not as a risk management tool. People still buy insurance policies after comparing the maturity yield to that of Fixed Deposits, RBI Bonds, PPF etc.

Today, the face of competition has changed and people do compare the products of LIC and private insurance companies before taking a decision.

In the last 9 years we have seen that LIC has been growing at a very healthy rate. Though the market share has been shrinking, the annual results of LIC have never taken a beating.However, it is also the responsibility of the management of LIC to understand that it cannot take competition for granted in the long run.

LIC should upgrade the Agents with professional training and equip them with proper insfrastructure to face the competition in the future.

Dear Anurag, the answer to your question is "yes" and "no".  The reason for saying 'yes' is that if a glass is full of milk and if you put some grains of sugar (I wont call it grains of sand), then its bound to spill out a bit.  Hence there is loss of its market share.

The reason for saying 'no' is that this kind of competition is really worthless since this competition which LIC is facing is only with one or two of its products like the 'ULIP' and 'pension plans' and to some extent in 'term insurance plans'.  The simple reason for this again is that the commission structure of LIC in these plans is very less compared to other conventional plans like Money Back and Endowment type plans.  Due to this the agents don't concentrate on the sale of these plans.  In the term plans the premium is very less and therefore, the agents avoid selling it.

The conventional plans fetch handsome commissions for the agents and LIC gets to keep this amount for a long time with it.  LIC is now concentrating more on Pension and ULIP sales.  Ultimately its the field force which gets you business.  Proper training and motivation from the Development Officers on a regular basis, drive the agents and thereby bring good business for LIC.

Today, no field has been left out, which has no competition.  Competition, is always good for the market and the consumer.  But good and efficient service backup is must since we are in a service industry.

We still have a long way to go from here.  The journey has just begun.

I think nobody can't beat LIC in Insurance in India and the reason is very simple as LIC is a PSU and public sector is most trust worthy. Insurance is like an long term investment and every wants to avail assured returns and LIC is quite ahead on that aspect than its counterparts.