Distribution of Lic
M. S Primary objective of the distribution is to increase the customer base who have a disposable income level of more than 2 lakhs per annum. Price: The price of a life insurance depends upon the period by which premium is bieng paid. Specifications of LIC child fortune plus is given below Specifications | LIC Child Fortune plus | Age (Male)| 35 years| Premium| 1,00,000| Sum Assured| 5,00,000| Benefit Period| 20 years| Fund Option| Growth Fund| Premium Paying Term| 20 years|Maturity FV @10%| 45,29,923| Margins of intermediaries: Margins of intermediaries is on commission basis. These intermediaries have varied commission rates according to the policy and according to the company. These margin rates generally lie between 7-8%. Other brands handled by intermediaries: Intermediaries may handle various other brands also.
The most common brands that these intermediaries handle are : * Aviva wealth plus one * ICICI health plan Size of network (no of intermediaries): In insurance market only one intermediary is found.That is the agent who acts on behalf of the company and for the customer. Sale volume at each level: Sale volume in insurance sector is increasing day by day. The Insurance company sell at an average volume of Rs . 140 crores. The Distributor sell at an average volume of Rs 8 lakhs. Logistics: There are two modes of selling the insurance Policy 1.
Offline: This through the agent who handles the customer. 2. Online : The insurance forms are available in the internet where it is a tedious tasks to fill various forms through online medium.Mostly the offline mode of delivery is preffered by most of the customers. Promotion by channel members: 1. Company : Most of the promotions are done by the LIC only. They advertise in Televisions, Radio, Interenet and various other print media.
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They also ensure in sponsoring for various events and conferences which deal with the insurance business. 2. Agent : Agent don’t involve in huge promotions instead they induldge in viral marketing which spreads the word of mouth from one customer to another. Financial flow in the channel:
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