There are numerous factors that get affected while taking insurance from Private organizations and LIC of India. Although, the basic objective of taking insurance remains the same, the cost & benefit, formalities, eligibility, etc. differ:

Premium: The premium charged by LIC of India is always comparatively less than that charged by the Private organizations.
Requirements: LIC of India form insurance policies keeping in mind the requirement of the customer, but they are not flexible enough to be modified according to customers. While some private organizations allow customers to get their policies modified according to their needs and suitability.

Claim settlement: LIC of India is observed to make more claim settlements (98%) in comparison to Private organizations with an average settlement ratio of 93% altogether.

Innovation: LIC of India tend to be lagging behind in terms of becoming a trendsetter for new or innovative products. This is a good catch with private organizations.

Online presence: Although LIC has entered the online market, it has a limited portfolio of products over this platform. On the other hand, private organizations are taking advantage of the online market place by launching more and more products on this platform.

To conclude, even if we try to compare both the insurance sectors there are things that are better in one than the other. So it becomes to conclude which sector is doing well. But LIC of India surely needs to make changes for betterment.