CHAPTER 1

INTRODUCTION

INDUSTRY PROFILE

History of the insurance industry in India dates back in 1818 when the first insurance

company was formed Oriental Insurance Company Limited It has since undergone several

reforms in the form of liberalization and privatisation In the ensuing discussion we shall

seek to explore the nature of the industry in general Insurance industry in India underwent a

drastic structural change from the year 2000-01After the government of India on the

recommendations of Malhotra committee allowed Private players to operate in the market

The rationale behind allowing the private players into the Insurance sector can be attributed

to following factors

LIC failed to serve and fulfil the insurance needs of the people of India

Allow access of insurance facility to rural masses

Allow companies to float Micro insurance product

Insurance to be seen as Investment Option

Allow exposure of Insurance schemes to capital market

Following entry of private players the dominance of LIC slowly shrieked Private players had

to rope a foreign player which already had experience in the market This enabled the

companies to bring in several innovative products which not only attracted large investments

but also generated interest among those who had remained obliviant towards Insurance

Thus large untapped market was penetrated

The equity holding for foreign players was to be 26 and the rest was to be retained by

Indian player

Three players were given licence to operate in the year 2000 ICICI prudential HDFC

standard life Max New York Life Insurance Co Ltd In the year 2001 Birla sun life TATA

1

AIG Kotak Mahindra old mutual SBI life insurance MetLife insurance Bajaj Allianz were

given licences to operate in the market

Presently there are 22 companies with 15 companies are awaiting approval from the

regulatory body

INDUSTRY STRUCTURE

111 REGULATORY FRAMEWORK

This industry is regulated by the Insurance Regulatory amp Development Authority (IRDA) It

ensures that all policyholdersrsquo interests are protected IRDA has listed all stakeholders in the

industry including corporate agents brokers surveyors insurance councils state and life

insurers and one main reinsurer

These players in the market are the driving force towards achieving a record 3 of the gross

domestic product in the economy in India The brokers for example are assigned the work of

distributing the premiums mainly through direct sales IRDA also offers guidelines with

regard to investment in mutual funds pension general annuity funds and group schemes

DUTIES POWERS AND FUNCTIONS OF IRDA

2

MINISTRY OF FINANCE

IDRA SEBI

GOVERNMENT PLAYERS

PRIVATE PLAYERS

LIC SBI LIFE

KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA Subject

to the provisions of this Act and any other law for the time being in force the Authority shall

have the duty to regulate promote and ensure orderly growth of the insurance

businessandre-insurancebusiness

(1) Without prejudice to the generality of the provisions contained in sub-section (1) the

powers and functions of the Authority shall include several things like -

issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(2) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender

value of policy and other terms and conditions of contracts of insurance

(3) specifying requisite qualifications code of conduct and practical training for intermediary

or insurance intermediaries and agents

(4) specifying the code of conduct for surveyors and loss assessors

(5) promoting efficiency in the conduct of insurance business

(6) promoting and regulating professional organisations connected with the insurance and

re-insurance business

(7) levying fees and other charges for carrying out the purposes of this Act

(8) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and

other organisations connected with the insurance business

(9) control and regulation of the rates advantages terms and conditions that may be offered

by insurers in respect of general insurance business not so controlled and regulated by the

Tariff Advisory Committee under section 64U of the Insurance Act 1938 (4 of 1938)

(10) specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance intermediaries

(11) regulating investment of funds by insurance companies

(12) regulating maintenance of margin of solvency

(13) adjudication of disputes between insurers and intermediaries or insurance intermediaries

(14) supervising the functioning of the Tariff Advisory Committee

3

SERVICESINTHEINDUSTRY

The services rendered by this industry are overshadowed by the industrys history of

liberalization and nationalization Two main sectors exist They are the public sector and the

private sector with the former dominating the market

Individual company service provision includes such services as life insurance (endowment

assurance money back and miscellaneous services) and general insurancenon life insurance

(includes marine insurance motor insurance which is compulsory in the country fire

insurance etc)

FUTUREOFTHEINDUSTRY

From as early as 1947 to 1972 this industry has gone through dynamic change With the

formation of the regulatory body passing of the insurance act and passing of various

reforms this industry has become competitive and continues to attract interest from foreign

countries However the recent economic recession has greatly affected this industry

Currently there is a major credit crisis affecting the industry A typical example is the

collapse of US based AIG Company that has had ripple effects on to Indiarsquos TATA-AIG

General Insurance Company Bajaj Allianz Prudential and ICICI companies have already

closed some of their branches

Many players have proposed the merging of the various companies in the sector to be able to

caution themselves from the crunch It is equally important to note that recession is not new

to Indiarsquos economy The country has been able to come out of one once and it can do so even

now

LIFE INSURANCE POLICIES

Life insurance is a deal in which a person pledges money to a person which he choose so in

case of any misshaping all the money goes to that nominated person

The payment of the insured amount handover in these situations such as the date of maturity

given date or time frame and on the death of the insured man in case it occurs earlier

4

Life insurance policies are well known throughout the world and liked by the people because

these policies become a helping hand for their family in the situation if something happened

to the policyholder

This contract is civilized solution of the problems caused by death for the family of that

insured person The contract is useful at the extreme level of life and death such as if a person

die then his payment is given to his family on the other hand if the person become old and

cannot do anything for his earning then the contract come forward and helped the person

The contract is also a long term investment in which person can save his money for his old

age in spite of any mishap The method of saving money is very simple and easy because

company gives you the option of instalment call as premium and this money for insurance is

invest on monthly quarterly half-yearly or yearly basis

There is a simple example of salary saving scheme in which each month a little amount will

deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme

for everybody who wants to do something for himself and for his family after his sudden

death

ENDOWMENT POLICY INDIA

Endowment is a life time policy in which the assured sum is come back to the policy holder

after the specific time period along with the bonuses except in case of the policy holder death

This policy is liked all around the globe as well as in India also The design of the policy is to

provide the benefit for living but it also cover the life protection policy

The people admired this policy because it is not only an investment but a whole life policy

also

In India endowment policies become a big business because these policies help to generate

the money as well as the money circulate in the market and market value goes high These

companies earn so much profit through stock exchange because the shares of these

companies sell in very high price in the market

5

The endowment policy in India is very popular nowadays because it is different from all the

other policies which are available in the market The premium of the policy is to payable for

the full term in spite of that policyholder death

The policy has one drawback that its premium rate is high but bonus rate is low However it

has also one big attraction that they provide return in instalment when the term ends

The big advantage of this policy is that you can buy an annuity policy after the end of the

term of endowment policy and the annuity policy gives you the monthly income for whole

life

The policy gives so many benefits to its holder it helps you in case of any disability which

occur by an accident and you become totally disable before reaching the age of 70 and the

policy you hold is full force Then policy gives the benefit and you do not have to pay any

further instalment of the policy

GROUP INSURANCE POLICY

There are several individuals who are unable to purchase expensive life insurance policies

due to which they have to suffer several health problems without having any health treatment

But if you are working somewhere in organization then you can easily secure your life by

participating in Group Insurance Policy India which is purchased by the employers for their

employees in order to provide them utmost protection

This policy ensures about complete health coverage of employees and provides them benefits

by giving lots of services at lower cost per employee

There are numerous profitable and non-profitable organizations which can participate in this

type of policy as there is no strict restriction in it When employers purchase this policy for

their employees they get the certificates which ensure that they will surely obtain the

advantages

Itrsquos obvious that if this policy requires HMO registration then both employer and employees

have to participate in this program through which employees can better take care of their

health Through Group Insurance Policy India employees obtain flexible payroll deduction

6

but on the other hand there are some organizations which bear all instalments of this policy in

order provide their employees highest benefits

Insurance company can increase the price of premium any time they want and you cannot say

a single word against this action If a situation occurs when one of the employees have to go

for expensive treatment for his bad health then all the group has to bear high premium costs

Several companies have their own requirements regarding to numerous terms and conditions

Majority of group insurance Indianrsquos companies provide facility to get the regular doctor

checkups as well as they bear the medical expenses when employee gets through any severe

accident If employee requires any extended care in hospital then group insurance companies

always take care of this need of an employee by providing him complete health protection

PENSION PLAN OR ANNUITIES

How would you feel when your children will not support you in your old age How would

you feel when you will have to spend your golden period in old age home You would

definitely feel bad when you will have to suffer from these types of problems

Why not to choose that option which will provide you long term benefits after your

retirement and you donrsquot have to rely on anyonersquos salary and income

Take the help of Pension Plan or Annuities India or you can get both but there is a need to

boost up your mental skills in order to make right decision

Itrsquos never too late when you go for your retirement plans Always think positively and you

will get positive outcomes Itrsquos very important to save your future life earlier because future

life is going to be very tough which you can analyze from our present situation where people

of this world have been trapped into difficult situation

You just need to choose which plan suits to you a lot because pension is what you obtain

from your employer on your past working period with him And after your retirement you

obtain the amount at regular intervals after every month

JOINT LIFE POLICY

7

You will find several life insurance policies which are as similar as endowment policies are

Joint Life policy India also provides the same benefits but with the different features as well

This policy is purchased by couples and business partners Couples want to take the benefits

of this policy so that they would able to survive well when person would die husband or

wife

Business partners want to purchase this policy so that they would able to handle the business

in superb manner when one partner of this business dies

Itrsquos true that this policy provides utmost pleasure to you but only once when one person

passes away There are several couples who obtain maximum benefits from this policy This

policy provides you 10 years coverage as well as this policy is very much cost effective and

provides you best short term returns

Joint Life policy India provides complete protection to your mortgage If a couple has bought

any house on mortgage and after sometimes one person out of this couple is died due to

some severe reason then survived spouse will be able to handle its mortgage property with

the help of this policy

That person can easily pay the debts and will not find any difficulty in future while surviving

with the children Spouse will also get extra bonuses which would help himher to save

chunks of money which can be spent in other area of life in excellent manner

LOAN COVER TERM ASSURANCE POLICY

We are living in that era where we have to suffer many financial problems If we want to

purchase a house by our own we are unable to do so because of having less chances of

earning high

In this situation people adopt many loan facilities through which they fulfil their basic needs

like purchasing a home and get rid of paying rents

But if you think that you can easily get a house by having house loan then you are not taking

this matter seriously because house financing companies have some rules and regulations

which have to be followed in time otherwise you are unable to get your own house

8

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

Section 14 of IRDA Act 1999 lays down the duties powers and functions of IRDA Subject

to the provisions of this Act and any other law for the time being in force the Authority shall

have the duty to regulate promote and ensure orderly growth of the insurance

businessandre-insurancebusiness

(1) Without prejudice to the generality of the provisions contained in sub-section (1) the

powers and functions of the Authority shall include several things like -

issue to the applicant a certificate of registration renew modify withdraw suspend or cancel

such registration

(2) protection of the interests of the policy holders in matters concerning assigning of policy

nomination by policy holders insurable interest settlement of insurance claim surrender

value of policy and other terms and conditions of contracts of insurance

(3) specifying requisite qualifications code of conduct and practical training for intermediary

or insurance intermediaries and agents

(4) specifying the code of conduct for surveyors and loss assessors

(5) promoting efficiency in the conduct of insurance business

(6) promoting and regulating professional organisations connected with the insurance and

re-insurance business

(7) levying fees and other charges for carrying out the purposes of this Act

(8) calling for information from undertaking inspection of conducting enquiries and

investigations including audit of the insurers intermediaries insurance intermediaries and

other organisations connected with the insurance business

(9) control and regulation of the rates advantages terms and conditions that may be offered

by insurers in respect of general insurance business not so controlled and regulated by the

Tariff Advisory Committee under section 64U of the Insurance Act 1938 (4 of 1938)

(10) specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance intermediaries

(11) regulating investment of funds by insurance companies

(12) regulating maintenance of margin of solvency

(13) adjudication of disputes between insurers and intermediaries or insurance intermediaries

(14) supervising the functioning of the Tariff Advisory Committee

3

SERVICESINTHEINDUSTRY

The services rendered by this industry are overshadowed by the industrys history of

liberalization and nationalization Two main sectors exist They are the public sector and the

private sector with the former dominating the market

Individual company service provision includes such services as life insurance (endowment

assurance money back and miscellaneous services) and general insurancenon life insurance

(includes marine insurance motor insurance which is compulsory in the country fire

insurance etc)

FUTUREOFTHEINDUSTRY

From as early as 1947 to 1972 this industry has gone through dynamic change With the

formation of the regulatory body passing of the insurance act and passing of various

reforms this industry has become competitive and continues to attract interest from foreign

countries However the recent economic recession has greatly affected this industry

Currently there is a major credit crisis affecting the industry A typical example is the

collapse of US based AIG Company that has had ripple effects on to Indiarsquos TATA-AIG

General Insurance Company Bajaj Allianz Prudential and ICICI companies have already

closed some of their branches

Many players have proposed the merging of the various companies in the sector to be able to

caution themselves from the crunch It is equally important to note that recession is not new

to Indiarsquos economy The country has been able to come out of one once and it can do so even

now

LIFE INSURANCE POLICIES

Life insurance is a deal in which a person pledges money to a person which he choose so in

case of any misshaping all the money goes to that nominated person

The payment of the insured amount handover in these situations such as the date of maturity

given date or time frame and on the death of the insured man in case it occurs earlier

4

Life insurance policies are well known throughout the world and liked by the people because

these policies become a helping hand for their family in the situation if something happened

to the policyholder

This contract is civilized solution of the problems caused by death for the family of that

insured person The contract is useful at the extreme level of life and death such as if a person

die then his payment is given to his family on the other hand if the person become old and

cannot do anything for his earning then the contract come forward and helped the person

The contract is also a long term investment in which person can save his money for his old

age in spite of any mishap The method of saving money is very simple and easy because

company gives you the option of instalment call as premium and this money for insurance is

invest on monthly quarterly half-yearly or yearly basis

There is a simple example of salary saving scheme in which each month a little amount will

deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme

for everybody who wants to do something for himself and for his family after his sudden

death

ENDOWMENT POLICY INDIA

Endowment is a life time policy in which the assured sum is come back to the policy holder

after the specific time period along with the bonuses except in case of the policy holder death

This policy is liked all around the globe as well as in India also The design of the policy is to

provide the benefit for living but it also cover the life protection policy

The people admired this policy because it is not only an investment but a whole life policy

also

In India endowment policies become a big business because these policies help to generate

the money as well as the money circulate in the market and market value goes high These

companies earn so much profit through stock exchange because the shares of these

companies sell in very high price in the market

5

The endowment policy in India is very popular nowadays because it is different from all the

other policies which are available in the market The premium of the policy is to payable for

the full term in spite of that policyholder death

The policy has one drawback that its premium rate is high but bonus rate is low However it

has also one big attraction that they provide return in instalment when the term ends

The big advantage of this policy is that you can buy an annuity policy after the end of the

term of endowment policy and the annuity policy gives you the monthly income for whole

life

The policy gives so many benefits to its holder it helps you in case of any disability which

occur by an accident and you become totally disable before reaching the age of 70 and the

policy you hold is full force Then policy gives the benefit and you do not have to pay any

further instalment of the policy

GROUP INSURANCE POLICY

There are several individuals who are unable to purchase expensive life insurance policies

due to which they have to suffer several health problems without having any health treatment

But if you are working somewhere in organization then you can easily secure your life by

participating in Group Insurance Policy India which is purchased by the employers for their

employees in order to provide them utmost protection

This policy ensures about complete health coverage of employees and provides them benefits

by giving lots of services at lower cost per employee

There are numerous profitable and non-profitable organizations which can participate in this

type of policy as there is no strict restriction in it When employers purchase this policy for

their employees they get the certificates which ensure that they will surely obtain the

advantages

Itrsquos obvious that if this policy requires HMO registration then both employer and employees

have to participate in this program through which employees can better take care of their

health Through Group Insurance Policy India employees obtain flexible payroll deduction

6

but on the other hand there are some organizations which bear all instalments of this policy in

order provide their employees highest benefits

Insurance company can increase the price of premium any time they want and you cannot say

a single word against this action If a situation occurs when one of the employees have to go

for expensive treatment for his bad health then all the group has to bear high premium costs

Several companies have their own requirements regarding to numerous terms and conditions

Majority of group insurance Indianrsquos companies provide facility to get the regular doctor

checkups as well as they bear the medical expenses when employee gets through any severe

accident If employee requires any extended care in hospital then group insurance companies

always take care of this need of an employee by providing him complete health protection

PENSION PLAN OR ANNUITIES

How would you feel when your children will not support you in your old age How would

you feel when you will have to spend your golden period in old age home You would

definitely feel bad when you will have to suffer from these types of problems

Why not to choose that option which will provide you long term benefits after your

retirement and you donrsquot have to rely on anyonersquos salary and income

Take the help of Pension Plan or Annuities India or you can get both but there is a need to

boost up your mental skills in order to make right decision

Itrsquos never too late when you go for your retirement plans Always think positively and you

will get positive outcomes Itrsquos very important to save your future life earlier because future

life is going to be very tough which you can analyze from our present situation where people

of this world have been trapped into difficult situation

You just need to choose which plan suits to you a lot because pension is what you obtain

from your employer on your past working period with him And after your retirement you

obtain the amount at regular intervals after every month

JOINT LIFE POLICY

7

You will find several life insurance policies which are as similar as endowment policies are

Joint Life policy India also provides the same benefits but with the different features as well

This policy is purchased by couples and business partners Couples want to take the benefits

of this policy so that they would able to survive well when person would die husband or

wife

Business partners want to purchase this policy so that they would able to handle the business

in superb manner when one partner of this business dies

Itrsquos true that this policy provides utmost pleasure to you but only once when one person

passes away There are several couples who obtain maximum benefits from this policy This

policy provides you 10 years coverage as well as this policy is very much cost effective and

provides you best short term returns

Joint Life policy India provides complete protection to your mortgage If a couple has bought

any house on mortgage and after sometimes one person out of this couple is died due to

some severe reason then survived spouse will be able to handle its mortgage property with

the help of this policy

That person can easily pay the debts and will not find any difficulty in future while surviving

with the children Spouse will also get extra bonuses which would help himher to save

chunks of money which can be spent in other area of life in excellent manner

LOAN COVER TERM ASSURANCE POLICY

We are living in that era where we have to suffer many financial problems If we want to

purchase a house by our own we are unable to do so because of having less chances of

earning high

In this situation people adopt many loan facilities through which they fulfil their basic needs

like purchasing a home and get rid of paying rents

But if you think that you can easily get a house by having house loan then you are not taking

this matter seriously because house financing companies have some rules and regulations

which have to be followed in time otherwise you are unable to get your own house

8

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

SERVICESINTHEINDUSTRY

The services rendered by this industry are overshadowed by the industrys history of

liberalization and nationalization Two main sectors exist They are the public sector and the

private sector with the former dominating the market

Individual company service provision includes such services as life insurance (endowment

assurance money back and miscellaneous services) and general insurancenon life insurance

(includes marine insurance motor insurance which is compulsory in the country fire

insurance etc)

FUTUREOFTHEINDUSTRY

From as early as 1947 to 1972 this industry has gone through dynamic change With the

formation of the regulatory body passing of the insurance act and passing of various

reforms this industry has become competitive and continues to attract interest from foreign

countries However the recent economic recession has greatly affected this industry

Currently there is a major credit crisis affecting the industry A typical example is the

collapse of US based AIG Company that has had ripple effects on to Indiarsquos TATA-AIG

General Insurance Company Bajaj Allianz Prudential and ICICI companies have already

closed some of their branches

Many players have proposed the merging of the various companies in the sector to be able to

caution themselves from the crunch It is equally important to note that recession is not new

to Indiarsquos economy The country has been able to come out of one once and it can do so even

now

LIFE INSURANCE POLICIES

Life insurance is a deal in which a person pledges money to a person which he choose so in

case of any misshaping all the money goes to that nominated person

The payment of the insured amount handover in these situations such as the date of maturity

given date or time frame and on the death of the insured man in case it occurs earlier

4

Life insurance policies are well known throughout the world and liked by the people because

these policies become a helping hand for their family in the situation if something happened

to the policyholder

This contract is civilized solution of the problems caused by death for the family of that

insured person The contract is useful at the extreme level of life and death such as if a person

die then his payment is given to his family on the other hand if the person become old and

cannot do anything for his earning then the contract come forward and helped the person

The contract is also a long term investment in which person can save his money for his old

age in spite of any mishap The method of saving money is very simple and easy because

company gives you the option of instalment call as premium and this money for insurance is

invest on monthly quarterly half-yearly or yearly basis

There is a simple example of salary saving scheme in which each month a little amount will

deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme

for everybody who wants to do something for himself and for his family after his sudden

death

ENDOWMENT POLICY INDIA

Endowment is a life time policy in which the assured sum is come back to the policy holder

after the specific time period along with the bonuses except in case of the policy holder death

This policy is liked all around the globe as well as in India also The design of the policy is to

provide the benefit for living but it also cover the life protection policy

The people admired this policy because it is not only an investment but a whole life policy

also

In India endowment policies become a big business because these policies help to generate

the money as well as the money circulate in the market and market value goes high These

companies earn so much profit through stock exchange because the shares of these

companies sell in very high price in the market

5

The endowment policy in India is very popular nowadays because it is different from all the

other policies which are available in the market The premium of the policy is to payable for

the full term in spite of that policyholder death

The policy has one drawback that its premium rate is high but bonus rate is low However it

has also one big attraction that they provide return in instalment when the term ends

The big advantage of this policy is that you can buy an annuity policy after the end of the

term of endowment policy and the annuity policy gives you the monthly income for whole

life

The policy gives so many benefits to its holder it helps you in case of any disability which

occur by an accident and you become totally disable before reaching the age of 70 and the

policy you hold is full force Then policy gives the benefit and you do not have to pay any

further instalment of the policy

GROUP INSURANCE POLICY

There are several individuals who are unable to purchase expensive life insurance policies

due to which they have to suffer several health problems without having any health treatment

But if you are working somewhere in organization then you can easily secure your life by

participating in Group Insurance Policy India which is purchased by the employers for their

employees in order to provide them utmost protection

This policy ensures about complete health coverage of employees and provides them benefits

by giving lots of services at lower cost per employee

There are numerous profitable and non-profitable organizations which can participate in this

type of policy as there is no strict restriction in it When employers purchase this policy for

their employees they get the certificates which ensure that they will surely obtain the

advantages

Itrsquos obvious that if this policy requires HMO registration then both employer and employees

have to participate in this program through which employees can better take care of their

health Through Group Insurance Policy India employees obtain flexible payroll deduction

6

but on the other hand there are some organizations which bear all instalments of this policy in

order provide their employees highest benefits

Insurance company can increase the price of premium any time they want and you cannot say

a single word against this action If a situation occurs when one of the employees have to go

for expensive treatment for his bad health then all the group has to bear high premium costs

Several companies have their own requirements regarding to numerous terms and conditions

Majority of group insurance Indianrsquos companies provide facility to get the regular doctor

checkups as well as they bear the medical expenses when employee gets through any severe

accident If employee requires any extended care in hospital then group insurance companies

always take care of this need of an employee by providing him complete health protection

PENSION PLAN OR ANNUITIES

How would you feel when your children will not support you in your old age How would

you feel when you will have to spend your golden period in old age home You would

definitely feel bad when you will have to suffer from these types of problems

Why not to choose that option which will provide you long term benefits after your

retirement and you donrsquot have to rely on anyonersquos salary and income

Take the help of Pension Plan or Annuities India or you can get both but there is a need to

boost up your mental skills in order to make right decision

Itrsquos never too late when you go for your retirement plans Always think positively and you

will get positive outcomes Itrsquos very important to save your future life earlier because future

life is going to be very tough which you can analyze from our present situation where people

of this world have been trapped into difficult situation

You just need to choose which plan suits to you a lot because pension is what you obtain

from your employer on your past working period with him And after your retirement you

obtain the amount at regular intervals after every month

JOINT LIFE POLICY

7

You will find several life insurance policies which are as similar as endowment policies are

Joint Life policy India also provides the same benefits but with the different features as well

This policy is purchased by couples and business partners Couples want to take the benefits

of this policy so that they would able to survive well when person would die husband or

wife

Business partners want to purchase this policy so that they would able to handle the business

in superb manner when one partner of this business dies

Itrsquos true that this policy provides utmost pleasure to you but only once when one person

passes away There are several couples who obtain maximum benefits from this policy This

policy provides you 10 years coverage as well as this policy is very much cost effective and

provides you best short term returns

Joint Life policy India provides complete protection to your mortgage If a couple has bought

any house on mortgage and after sometimes one person out of this couple is died due to

some severe reason then survived spouse will be able to handle its mortgage property with

the help of this policy

That person can easily pay the debts and will not find any difficulty in future while surviving

with the children Spouse will also get extra bonuses which would help himher to save

chunks of money which can be spent in other area of life in excellent manner

LOAN COVER TERM ASSURANCE POLICY

We are living in that era where we have to suffer many financial problems If we want to

purchase a house by our own we are unable to do so because of having less chances of

earning high

In this situation people adopt many loan facilities through which they fulfil their basic needs

like purchasing a home and get rid of paying rents

But if you think that you can easily get a house by having house loan then you are not taking

this matter seriously because house financing companies have some rules and regulations

which have to be followed in time otherwise you are unable to get your own house

8

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

Life insurance policies are well known throughout the world and liked by the people because

these policies become a helping hand for their family in the situation if something happened

to the policyholder

This contract is civilized solution of the problems caused by death for the family of that

insured person The contract is useful at the extreme level of life and death such as if a person

die then his payment is given to his family on the other hand if the person become old and

cannot do anything for his earning then the contract come forward and helped the person

The contract is also a long term investment in which person can save his money for his old

age in spite of any mishap The method of saving money is very simple and easy because

company gives you the option of instalment call as premium and this money for insurance is

invest on monthly quarterly half-yearly or yearly basis

There is a simple example of salary saving scheme in which each month a little amount will

deducted from onersquos salary for paying the premium of the scheme This is the ideal scheme

for everybody who wants to do something for himself and for his family after his sudden

death

ENDOWMENT POLICY INDIA

Endowment is a life time policy in which the assured sum is come back to the policy holder

after the specific time period along with the bonuses except in case of the policy holder death

This policy is liked all around the globe as well as in India also The design of the policy is to

provide the benefit for living but it also cover the life protection policy

The people admired this policy because it is not only an investment but a whole life policy

also

In India endowment policies become a big business because these policies help to generate

the money as well as the money circulate in the market and market value goes high These

companies earn so much profit through stock exchange because the shares of these

companies sell in very high price in the market

5

The endowment policy in India is very popular nowadays because it is different from all the

other policies which are available in the market The premium of the policy is to payable for

the full term in spite of that policyholder death

The policy has one drawback that its premium rate is high but bonus rate is low However it

has also one big attraction that they provide return in instalment when the term ends

The big advantage of this policy is that you can buy an annuity policy after the end of the

term of endowment policy and the annuity policy gives you the monthly income for whole

life

The policy gives so many benefits to its holder it helps you in case of any disability which

occur by an accident and you become totally disable before reaching the age of 70 and the

policy you hold is full force Then policy gives the benefit and you do not have to pay any

further instalment of the policy

GROUP INSURANCE POLICY

There are several individuals who are unable to purchase expensive life insurance policies

due to which they have to suffer several health problems without having any health treatment

But if you are working somewhere in organization then you can easily secure your life by

participating in Group Insurance Policy India which is purchased by the employers for their

employees in order to provide them utmost protection

This policy ensures about complete health coverage of employees and provides them benefits

by giving lots of services at lower cost per employee

There are numerous profitable and non-profitable organizations which can participate in this

type of policy as there is no strict restriction in it When employers purchase this policy for

their employees they get the certificates which ensure that they will surely obtain the

advantages

Itrsquos obvious that if this policy requires HMO registration then both employer and employees

have to participate in this program through which employees can better take care of their

health Through Group Insurance Policy India employees obtain flexible payroll deduction

6

but on the other hand there are some organizations which bear all instalments of this policy in

order provide their employees highest benefits

Insurance company can increase the price of premium any time they want and you cannot say

a single word against this action If a situation occurs when one of the employees have to go

for expensive treatment for his bad health then all the group has to bear high premium costs

Several companies have their own requirements regarding to numerous terms and conditions

Majority of group insurance Indianrsquos companies provide facility to get the regular doctor

checkups as well as they bear the medical expenses when employee gets through any severe

accident If employee requires any extended care in hospital then group insurance companies

always take care of this need of an employee by providing him complete health protection

PENSION PLAN OR ANNUITIES

How would you feel when your children will not support you in your old age How would

you feel when you will have to spend your golden period in old age home You would

definitely feel bad when you will have to suffer from these types of problems

Why not to choose that option which will provide you long term benefits after your

retirement and you donrsquot have to rely on anyonersquos salary and income

Take the help of Pension Plan or Annuities India or you can get both but there is a need to

boost up your mental skills in order to make right decision

Itrsquos never too late when you go for your retirement plans Always think positively and you

will get positive outcomes Itrsquos very important to save your future life earlier because future

life is going to be very tough which you can analyze from our present situation where people

of this world have been trapped into difficult situation

You just need to choose which plan suits to you a lot because pension is what you obtain

from your employer on your past working period with him And after your retirement you

obtain the amount at regular intervals after every month

JOINT LIFE POLICY

7

You will find several life insurance policies which are as similar as endowment policies are

Joint Life policy India also provides the same benefits but with the different features as well

This policy is purchased by couples and business partners Couples want to take the benefits

of this policy so that they would able to survive well when person would die husband or

wife

Business partners want to purchase this policy so that they would able to handle the business

in superb manner when one partner of this business dies

Itrsquos true that this policy provides utmost pleasure to you but only once when one person

passes away There are several couples who obtain maximum benefits from this policy This

policy provides you 10 years coverage as well as this policy is very much cost effective and

provides you best short term returns

Joint Life policy India provides complete protection to your mortgage If a couple has bought

any house on mortgage and after sometimes one person out of this couple is died due to

some severe reason then survived spouse will be able to handle its mortgage property with

the help of this policy

That person can easily pay the debts and will not find any difficulty in future while surviving

with the children Spouse will also get extra bonuses which would help himher to save

chunks of money which can be spent in other area of life in excellent manner

LOAN COVER TERM ASSURANCE POLICY

We are living in that era where we have to suffer many financial problems If we want to

purchase a house by our own we are unable to do so because of having less chances of

earning high

In this situation people adopt many loan facilities through which they fulfil their basic needs

like purchasing a home and get rid of paying rents

But if you think that you can easily get a house by having house loan then you are not taking

this matter seriously because house financing companies have some rules and regulations

which have to be followed in time otherwise you are unable to get your own house

8

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

The endowment policy in India is very popular nowadays because it is different from all the

other policies which are available in the market The premium of the policy is to payable for

the full term in spite of that policyholder death

The policy has one drawback that its premium rate is high but bonus rate is low However it

has also one big attraction that they provide return in instalment when the term ends

The big advantage of this policy is that you can buy an annuity policy after the end of the

term of endowment policy and the annuity policy gives you the monthly income for whole

life

The policy gives so many benefits to its holder it helps you in case of any disability which

occur by an accident and you become totally disable before reaching the age of 70 and the

policy you hold is full force Then policy gives the benefit and you do not have to pay any

further instalment of the policy

GROUP INSURANCE POLICY

There are several individuals who are unable to purchase expensive life insurance policies

due to which they have to suffer several health problems without having any health treatment

But if you are working somewhere in organization then you can easily secure your life by

participating in Group Insurance Policy India which is purchased by the employers for their

employees in order to provide them utmost protection

This policy ensures about complete health coverage of employees and provides them benefits

by giving lots of services at lower cost per employee

There are numerous profitable and non-profitable organizations which can participate in this

type of policy as there is no strict restriction in it When employers purchase this policy for

their employees they get the certificates which ensure that they will surely obtain the

advantages

Itrsquos obvious that if this policy requires HMO registration then both employer and employees

have to participate in this program through which employees can better take care of their

health Through Group Insurance Policy India employees obtain flexible payroll deduction

6

but on the other hand there are some organizations which bear all instalments of this policy in

order provide their employees highest benefits

Insurance company can increase the price of premium any time they want and you cannot say

a single word against this action If a situation occurs when one of the employees have to go

for expensive treatment for his bad health then all the group has to bear high premium costs

Several companies have their own requirements regarding to numerous terms and conditions

Majority of group insurance Indianrsquos companies provide facility to get the regular doctor

checkups as well as they bear the medical expenses when employee gets through any severe

accident If employee requires any extended care in hospital then group insurance companies

always take care of this need of an employee by providing him complete health protection

PENSION PLAN OR ANNUITIES

How would you feel when your children will not support you in your old age How would

you feel when you will have to spend your golden period in old age home You would

definitely feel bad when you will have to suffer from these types of problems

Why not to choose that option which will provide you long term benefits after your

retirement and you donrsquot have to rely on anyonersquos salary and income

Take the help of Pension Plan or Annuities India or you can get both but there is a need to

boost up your mental skills in order to make right decision

Itrsquos never too late when you go for your retirement plans Always think positively and you

will get positive outcomes Itrsquos very important to save your future life earlier because future

life is going to be very tough which you can analyze from our present situation where people

of this world have been trapped into difficult situation

You just need to choose which plan suits to you a lot because pension is what you obtain

from your employer on your past working period with him And after your retirement you

obtain the amount at regular intervals after every month

JOINT LIFE POLICY

7

You will find several life insurance policies which are as similar as endowment policies are

Joint Life policy India also provides the same benefits but with the different features as well

This policy is purchased by couples and business partners Couples want to take the benefits

of this policy so that they would able to survive well when person would die husband or

wife

Business partners want to purchase this policy so that they would able to handle the business

in superb manner when one partner of this business dies

Itrsquos true that this policy provides utmost pleasure to you but only once when one person

passes away There are several couples who obtain maximum benefits from this policy This

policy provides you 10 years coverage as well as this policy is very much cost effective and

provides you best short term returns

Joint Life policy India provides complete protection to your mortgage If a couple has bought

any house on mortgage and after sometimes one person out of this couple is died due to

some severe reason then survived spouse will be able to handle its mortgage property with

the help of this policy

That person can easily pay the debts and will not find any difficulty in future while surviving

with the children Spouse will also get extra bonuses which would help himher to save

chunks of money which can be spent in other area of life in excellent manner

LOAN COVER TERM ASSURANCE POLICY

We are living in that era where we have to suffer many financial problems If we want to

purchase a house by our own we are unable to do so because of having less chances of

earning high

In this situation people adopt many loan facilities through which they fulfil their basic needs

like purchasing a home and get rid of paying rents

But if you think that you can easily get a house by having house loan then you are not taking

this matter seriously because house financing companies have some rules and regulations

which have to be followed in time otherwise you are unable to get your own house

8

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

but on the other hand there are some organizations which bear all instalments of this policy in

order provide their employees highest benefits

Insurance company can increase the price of premium any time they want and you cannot say

a single word against this action If a situation occurs when one of the employees have to go

for expensive treatment for his bad health then all the group has to bear high premium costs

Several companies have their own requirements regarding to numerous terms and conditions

Majority of group insurance Indianrsquos companies provide facility to get the regular doctor

checkups as well as they bear the medical expenses when employee gets through any severe

accident If employee requires any extended care in hospital then group insurance companies

always take care of this need of an employee by providing him complete health protection

PENSION PLAN OR ANNUITIES

How would you feel when your children will not support you in your old age How would

you feel when you will have to spend your golden period in old age home You would

definitely feel bad when you will have to suffer from these types of problems

Why not to choose that option which will provide you long term benefits after your

retirement and you donrsquot have to rely on anyonersquos salary and income

Take the help of Pension Plan or Annuities India or you can get both but there is a need to

boost up your mental skills in order to make right decision

Itrsquos never too late when you go for your retirement plans Always think positively and you

will get positive outcomes Itrsquos very important to save your future life earlier because future

life is going to be very tough which you can analyze from our present situation where people

of this world have been trapped into difficult situation

You just need to choose which plan suits to you a lot because pension is what you obtain

from your employer on your past working period with him And after your retirement you

obtain the amount at regular intervals after every month

JOINT LIFE POLICY

7

You will find several life insurance policies which are as similar as endowment policies are

Joint Life policy India also provides the same benefits but with the different features as well

This policy is purchased by couples and business partners Couples want to take the benefits

of this policy so that they would able to survive well when person would die husband or

wife

Business partners want to purchase this policy so that they would able to handle the business

in superb manner when one partner of this business dies

Itrsquos true that this policy provides utmost pleasure to you but only once when one person

passes away There are several couples who obtain maximum benefits from this policy This

policy provides you 10 years coverage as well as this policy is very much cost effective and

provides you best short term returns

Joint Life policy India provides complete protection to your mortgage If a couple has bought

any house on mortgage and after sometimes one person out of this couple is died due to

some severe reason then survived spouse will be able to handle its mortgage property with

the help of this policy

That person can easily pay the debts and will not find any difficulty in future while surviving

with the children Spouse will also get extra bonuses which would help himher to save

chunks of money which can be spent in other area of life in excellent manner

LOAN COVER TERM ASSURANCE POLICY

We are living in that era where we have to suffer many financial problems If we want to

purchase a house by our own we are unable to do so because of having less chances of

earning high

In this situation people adopt many loan facilities through which they fulfil their basic needs

like purchasing a home and get rid of paying rents

But if you think that you can easily get a house by having house loan then you are not taking

this matter seriously because house financing companies have some rules and regulations

which have to be followed in time otherwise you are unable to get your own house

8

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

You will find several life insurance policies which are as similar as endowment policies are

Joint Life policy India also provides the same benefits but with the different features as well

This policy is purchased by couples and business partners Couples want to take the benefits

of this policy so that they would able to survive well when person would die husband or

wife

Business partners want to purchase this policy so that they would able to handle the business

in superb manner when one partner of this business dies

Itrsquos true that this policy provides utmost pleasure to you but only once when one person

passes away There are several couples who obtain maximum benefits from this policy This

policy provides you 10 years coverage as well as this policy is very much cost effective and

provides you best short term returns

Joint Life policy India provides complete protection to your mortgage If a couple has bought

any house on mortgage and after sometimes one person out of this couple is died due to

some severe reason then survived spouse will be able to handle its mortgage property with

the help of this policy

That person can easily pay the debts and will not find any difficulty in future while surviving

with the children Spouse will also get extra bonuses which would help himher to save

chunks of money which can be spent in other area of life in excellent manner

LOAN COVER TERM ASSURANCE POLICY

We are living in that era where we have to suffer many financial problems If we want to

purchase a house by our own we are unable to do so because of having less chances of

earning high

In this situation people adopt many loan facilities through which they fulfil their basic needs

like purchasing a home and get rid of paying rents

But if you think that you can easily get a house by having house loan then you are not taking

this matter seriously because house financing companies have some rules and regulations

which have to be followed in time otherwise you are unable to get your own house

8

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

If you are tired of attending the calls of HFC then you donrsquot need to worry when you have

full support of this insurance policy which is one of effective life insurance policies This

coverage provides you opportunity to reduce your loan instalments if you keep on paying the

insurance policyrsquos monthly premiums

HFC is linked with the Cover Term Assurance Policy of India so that interested individuals

would able to get rid of big problem of their life When HFC and insurance company link up

together they provide maximum relaxation to the individual to pay his home loan

After having the coverage you not only can get your own house but also you can get rid of

all those headaches which you were having due to non-paying instalments When you go

through any financial situation HFC doesnrsquot care about your painful situation

TERM LIFE POLICY

You can imagine better that when one day you will be passed away and will be gone away

from this world how your family will survive without you

They wonrsquot have enough money to live Your children have to leave their education Your

wife has to go for double shifting work Every schedule and facility of your familyrsquos life

would be disturbed

This term policy is considered to be a pure insurance protection because it never leaves you

empty hands at the time when you need money There are lots of advantages which you can

obtain from this policy First one is it provides complete protection to your family after your

death

Second one is you would never find any risk while having this policy and can pay instalments

in very nice manner Third one is you donrsquot have to pay instalment for longer period

There is a time duration which is specified for this policy and after that date this policy will

be expired and you will get your money back

Isnrsquot it the good choice to provide your family a protective backup system which will help

them at the time when you will no longer remain with your wife and children Majority

people think about their families a lot and purchase this policy

9

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

If you didnrsquot buy this policy yet then you should immediately get it because this is the only

policy which doesnrsquot take any extra charges against your paying instalments After having

term policy you will be assured about the protective life of your family

UNIT LINKED INSURANCE PLAN

Unit Linked Insurance Plan India provides highest benefits to those people who are interested

to invest in some companies or who want to purchase the units at their net asset value

This plan is just like mutual funds where several investors purchase some units in order to get

the income

Like mutual fund investors can obtain this coverage in order to purchase financial

instruments like stocks bonds securities etc

This plan is very efficient in handling your investment as well as it manages your risk profile

in fabulous manner You can get rid of major risk factors with the help of this plan which

provides you complete protection to your invested money

There are several key benefits you obtain from Unit Linked Insurance Plan which is one of

most protective life insurance policies and which ensure about the best life of you and your

family It means this plan provides you complete protection cover through which you can

spend good days of your life with your children parents and with your wife as well Unit

linked Indiarsquos plan is very simple uncomplicated and easy to understand

With the help of this plan you can better get an idea that how can you manage your capital

and how can you obtain maximum benefits out of this plan so that you would able to live

your life in better manner You should analyze the situation through which you can best

utilize your capitals over your purchased units

While having this plan you have to choose from three options ie debt equity and balanced

plan If any company doesnrsquot provide you these three options then you should consult any

other company which will provide you better opportunities

GENERAL INSURANCE

10

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

THEGENERALINSURANCEINDUSTRYININDIA

In India general insurance is a term used to mean all non life insurance business In other

countries terms like property casualty insurance and non life insurance are used

The history of this industry is characterized by massive reforms though the sector remains

heavily regulated Market liberalization in the industry took place in the year 2001

1THE VAST NATURE OF THE INDUSTRY

The industry meets its target market demand with products for marine insurance automobile

(which is compulsory in the country) public liability (also compulsory) homeownersrsquo

policies travel insurance etc The sector being highly regulated the public sector calls the

shots in determining the rules of delivering services in the country Typical companies

dominating the industry include

United India Insurance company

Reliance General Insurance Company (provides health insurance motor

insurance travel insurance personal accident insurance etc)and

United India Insurance Company (provides fire marine motor industrial

liability personal accident Mediclaim and Unimedicare policies amongst

others)

1 ADAPTING TO MODERN TECHNOLOGY

In general the industry has utilized state of the art information technology facilities in

delivering their services to their clients The sale of insurance policies in rural areas

has really gained from IT advancements in the industry The claim process is also

computerized allowing clients to quickly avail their claims to the company

The assessing of loss incurred in the event of fire for example is done by forensic

experts assuring the accuracy of calculation of the compensation to the claimant

11

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

Other adaptations include the teaming up with other industry stakeholders eg

universities in providing customized products to the clients

2 THE CHALLENGE OF THE TWENTY FIRST CENTURY

Various reforms characterize the market including the detarrification and mandatory

participation of foreign owned general insurance companies with resident companies

The twenty first century has brought a major challenge in this industry

One key challenge is the recession that is currently hitting almost all corners of the

economy of India However the general insurance sector seems to have been hit less

by the crisis compared to the life insurance sector ICICI-Prudential Life Insurance

was the hardest hit resulting into closure of some of its branches

The governing council has however come up with various code of conduct in

response to the credit crisis One particular code of conduct is geared towards the

control of these companiesrsquo pricing patterns with the detarrification in place

INDIAS HOME INSURANCE INDUSTRY

The home insurance industry falls under the general insurance umbrella sector It is a very

popular industry in India due to the obvious reason of the inherent risks faced in India

In the paragraphs below we shall seek to explore this industry in depth focusing on its

importance the kind of policies available in the market together with policy exclusions how

the claim process is done and finally quote a couple of companies that are the driving force in

this industry

IMPORTANCEOFGETTINGTHECOVER

Your home is your most valuable asset Both the structure and the contents in them This is

where you hold memories of your family growing from stage to stage This is where you go

to when you need some peace of mind

This is also where you keep your sentimental assets When catastrophes strike you may end

up losing your home and all its valuables It is important therefore that you get your cover to

shield you against these unforeseen circumstances

12

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

THEPOLICYTYPESANDTHEIREXCLUSIONS

various policies exist in the market for cover against potential loss of your home and its

contents These policies range from those to cater for repair cost on the building (risks being

riots fire especially with the rise of electrical appliances in various households) replacement

of stolen items (risks being burglary theft terrorism etc) etc The various policy types are

customized to the various risks involved ie landslides earthquakes explosions fire etc

THECLAIMPROCESS

Despite many clients airing their complaints with regard to how the claim process is clogged

with bureaucracies the industry has tried to make uniform the whole procedure and ensure

that the final customer benefits In this process the first thing to consider once the insured

risk has occurred is to minimize loss as much as possible

In the event of a fire outbreak try to salvage as much as you can The next step is to inform

the police authorities especially in the event of a theft burglary etc Then inform your

provider (ensure that you had given your provider details of your property well in advance)

The provider shall send a surveyor to come and estimate the extent of the damage Finally

you need to submit your claim form to your provider

Wikipedia provides an in-depth list of service providers in this industry Some of these like

Bajaj Allianz ICICI Prudential and Axis Bank have been calling the shots for a long time

INDIAS HEALTH INSURANCE INDUSTRY

The health insurance industry a branch of the general insurance has been existent for a long

time It started in Europe as workers sickness benefits and evolved into the private sector

covering the various sectors of the economy

In India the industry has had its own share of milestones and setbacks as you may discover in

the discussion that follows

NATUREOFTHEINDUSTRY

The health insurance industry is mostly dominated by the private sector The public sector

acts as a regulatory body while providing the basic health care needed The poor find it hard

13

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

to access these services Generally the demand for proper healthcare far outweighs the

supply for the same

Problems in accessing the services coupled with the poor financial structure with little

government support in the form of social security has been a big challenge in the industry

However like any other service providers in these typical sectors the principal of pooling is

utilized

POLICIESINTHEMARKET

This industry has policies that cater for the individual and family The policies have been

differentiated to penetrate in the various market niches Typical policies include indemnity

insurance (this is to compensate the client for the damageloss incurred) cashless claim

facilities (this as the name suggests is to cater for the costs incurred without necessarily

paying a cash lump sum to the insured) and community based insurance

SETBACKSINTHEINDUSTRY

The main pitfalls that have been experienced in this industry have been the provider

malpractice and the limited nature of the coverage provided Medical institutions have been

quoted to have taken advantage of the personrsquos cover and included exorbitant fees in the

claim bills

This is purely because a majority of persons have medical cover through employer schemes

Other malpractices include the failure of service providers to honour their promises and when

they do they delay the process making it hard for the claimant to recover from the loss The

other setback has been the inability to for example provide preventive healthcare policies

like for vaccinations voluntary testing etc All these are exclusions on the policies

The medical insurance industry has come in handy in times of various catastrophes like

floods earthquakes and accidents These covers have gone a long way in assisting persons to

recover from the loss and lead their individual lives as usual However a lot still needs to be

done for this industry by its stakeholders

INDIArsquoS MOTOR INSURANCE INDUSTRY

Indiarsquos motor insurance industry provides mandatory motor vehicle covers for all vehicle

owners

14

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

This industry also falls under the umbrella general insurance sector where home health and

travel insurance covers fall

THEEXTENTOFTHECOVER

This cover caters for risks related to the driver the passenger and any third party involved at

the time of loss

Typical risks include both natural and man-made risks Natural risks are in the form of fire

explosions and self-ignition Man-made risks on the other hand relate to theft and burglary

etc

The personal accident policy is a compulsory policy It caters for the individual and hisher

passengers The third party legal liability caters for claims for other parties due to the loss

caused by the driverrsquos actions

NATUREOFTHECOVER

This type of cover is on the insured declared value This is a fixed value at which the client

insures his motor vehicle According to ICICI this insured declared value is calculated based

on the listing selling price as provided by the manufacturer

PLAYERSINTHEINDUSTRY

The industry is full of players that have met the industry standards while others have fallen

short of them At one time I came across a bloggerrsquos work lamenting about the customer care

and the whole claim process making observations that serious loopholes do exist in this

industry

In his writing he quoted two prominent service providers that charge premiums for the same

policy but the difference between the two premiums was too big The customer care was also

poor wasting a lot of time on the phone waiting for the call to be transferred to the right

customer care representative and finally being asked to call after a day or two

The online claim forms also placed on the providersrsquo websites kept on returning error

messages This was just one of the persons who have had a nasty experience in this industry

But judging from the comments his observations generated one can tell he is not alone

15

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

INDIAS TRAVEL INSURANCE INDUSTRY

The travel insurance industry comes in handy in India especially because of the enormous

traffic of visitors in and out of the country

Needless to say this cover also caters for citizens It is much easier to deal with

hospitalization bills when you are covered than when you are not should a loss occur to you

when you are in a foreign country

The industry has evolved for many years In the following discussion we shall take a critical

look at the extent of the cover the benefits for the client the exclusions and the quote

details

COVERAGE

This cover caters for among others any unexpected medical bills while on vacation any flight

accidents or delays any accidental damage to your personal effects while travelling any

accidental loss of money or important documents any passport replacements that you may

need to do in case your original passport goes missing hijacking etc The list is endless

BENEFITS

One can never overemphasize the benefits of this type of insurance Just having the peace of

mind knowing that your service provider shall come to your rescue should you have any

mishap while on your trip is reason enough to go for the cover

The recovery of important documents lost while on a trip is a welcome relief to the client

Also being able to cater for your hospitalization commitments when in a foreign country is

very much welcome

EXCLUSIONSOFTHECOVER

This kind of cover has strict exclusions to shield the provider from being manipulated into

paying for intentional losses These exclusions include any pre-existing medical conditions

any deliberate exposure by the client to the particular risk covered any loss that occurred to

16

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

the client while under the influence of alcohol or drug abuse etc These exclusions are usually

included in the contract and the client needs to understand them in order to avoid any

confusion in the future

DETAILSOFTHEQUOTE

The travel insurance industry has quotes to the potential client detailing the kind of

information required to be submitted before signing the contract This includes the name of

the location to where the person is travelling to the type of policy the client intends to

undertake when the client intends to terminate the contract and when the policy should start

Persons travelling for business or leisure need to assess their need for cover and then do their

homework in settling for an appropriate service provider

CHAPTER 2

17

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

STATEMENT OF PROBLEM

To know Market penetration of IDBI Fortis Life Insurance Company

limited at Chennai The India Insurance industry has grown at phenomenal rate Starting

as a Monopolistic Industry it has transformed into highly competitive industry it is not just

doing something right that matters but it is also about doing nothing wrong Making profit

does not only mean a large customer base but also depends on Penetration level of the

services provided to the customers and premium remittances

The Insurance companies come out with many schemes and offers to attract customers and

to make them invest in various schemes provided by these companies Most Importantly

Market Penetration of companies based on parameters like geographical coverage agency

awareness level of products and sustainability in the market based on product fundamentals is

of paramount importance as they can largely affect the market capitalisation of Insurance

companies The aim of this study would supplement this effort of the company in a small

way

HYPOTHESIS

Market penetration of IDBI Fortis Life Insurance is same throughout Chennai

CHAPTER 3

OBJECTIVES OF THE STUDY

18

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

For an organization to be successful they need to be equipped with the current position of

their share in the market They need to understand the new and the unidentified potential

available in the market The organization needs to understand the changing scenario taking

place in the market with respect to their business All these could be achieved only by

understanding the market sentiments

Thus through a Study to understand the current status of their Market penetration the

organization can motivate the current efforts of their sales force and efforts could be taken to

reduce the weakness complaints and also could come up with new schemes and facilities

according to the expectations of the Insurers Keeping the above view in the mind objectives

for the study are set and are given below

31 PRIMARY OBJECTIVE

To find Market Penetration of IDBI FORTIS LIFE INSURANCE CO LTD at

Chennai

32 SECONDARY OBJECTIVE

The secondary objective of the study is to know awareness of different Insurance products

served in the market by different companies This project can also be a step in small way

towards identifying different channels through which companies can penetrate in market

33 SCOPE OF THE STUDY

The scope of the study conducted to know Market Penetration of IDBI Fortis Life Insurance

is confined to Insurance Industry location Chennai during the month of March and April This has

been achieved by taking down the respondentrsquos views and responses individually by the

researcher using a Questionnaire The researcher asks the research questions in the questionnaire

to the respondent in a face-to-face fashion and records the response which is then used for the

analysis and interpretation part of the study

Once the study is through the researcher would be in a position to

advise the company about Market Penetration of IDBI Fortis in the respective areas where the

study has been undertaken The study would also help the company to find out the general

preferences factors considered by the Investors with respect to geographical presence

awareness of brand Product agency proliferation in the market customer satisfaction and

retention

19

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

CHAPTER 4

REVIEW OF LITERATURE

20

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

INSURANCE SECTORS IN INDIA is booming up but not to level comparative with the

developed economics such as Japan Singapore etc Also with the opening of the Insurance

sector to the Private players have provided stiff competition resulting into quality product

Also there is a need to restructure the Indian government owned ldquoLife Insurance Corporation

of India so as to maximize revenue and in turn profit IRDA regulations and norms for the

allocation of funds need to have a comprehensive look In the phase of declining interest rate

and raising Inflation the funds need to be applied in productive areas so as to generate high

return Also in term in clients servicing areas such as premium payment after sales service

policy dispatch redressal of grievances has to be amended In the current scenario LIC has to

provide flexible products suited to the customer requirements Also a proper and systematic

risk management strategy needs to be adopted After the increase in terrorism and destructive

events around the global world such as Sept 11 attack on world trade centre US ndash Taliban

war US ndash Iraq war etc An alternative to reinsurance such as asset backed securities is

emerging out in the developed economies A catastrophe bond is one of the alternatives for

reinsurance Finally some policy such as pure term and pension scheme needed to be

addressed massively at both the urban and the rural segment so as to generate high premium

income which will help in the development and growth of the economy There has been

several studies done in past to in the field of insurance sector to know about the market

penetration of various companies But that had been done primarily with well established

brands Very few studies have been conducted on new companies like IDBI Fortis life

insurance One such study done by students of Anna University for ascertaining the same

studied the parameter from various aspects It formed the base for such study done in Chennai

and taken as continued effort for evaluating market penetration of Insurance companies and

IDBI Fortis in particular

CHAPTER 5

21

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

RESEARCH METHODOLOGYampLIMITATION OF STUDY

Research Design

Research design is the specification of procedures for collecting and

analyzing the data necessary to help identify or react to a problem or opportunity such that

the difference between the cost of obtaining various levels of accuracy and the expected clue

of the information associated with each level of accuracy is maximized A Descriptive

research type of research design was applied for the Study on Market Penetration of IDBI

Fortis Life Insurance at Chennai

Sample Design

Probability sampling based on Data collected from 115 respondents was

taken for study in the project due to limitation to collect data already stated above The

boundary region for study was part of urban Chennai

Sample Size

Data was collected from 115 respondents

Sampling Frame

The frame refers to the area where the primary data would be

collected The areas taken into consideration for the study purpose includes Parrys Mount

road Alwarpet Royapettah MMNagar Potheri These areas were selected primarily

because these are those areas which represents the most part of Chennai based on Income

level and cosmopolite of the city in order to give accurate findings representing the whole of

Part of the city The category of respondents included Business class respondents in service

etc

Data Collection Procedure

22

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

Data collection is the most impeccant aspects in the research process The data is collected

from the respondents using a structured questionnaire There are two types of data ie

Primary data and Secondary data

Primary Data - This type of data is collected directly from the respondents by the

researcher using the questionnaire as an instrument and personal interview as the

communication medium for collecting it Researcher directly visits the Retailers within the

sampling frame and asks the research questions to each respondent and records it for the

further analysis and interpretation purpose

Secondary Data ndash The researcher collects this type of data indirectly before starting of

with his research activities These were collected from the website of the Company IRDA

Business maps of India SEBI

Features of Questionnaire

The questionnaire was designed keeping in mind the research objectives for

the study respondentrsquos ability and willingness to answer accurately etc The preliminary

considerations required for the preparation of the questionnaire have been taken care

The type of questions incorporated in the questionnaire includes

1) Open-ended Questions Open-ended questions are those questions where

no alternatives are provided and the respondent answers within the implied limit

Eg Your complaints remarks suggestions for improving the services of

company

2) Dichotomous Questions These questions are closed ended questions with

only two options like yesno truefalse

3) Multiple choice Questions These questions include 3 to 7 specified

options and the respondent should select form the choices given

Eg Are you satisfied with its performance IDBI schemes

(a) Very Satisfied (b) Satisfied

(c) Neutral

23

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

STATISTICAL TOOLS USED

Frequency Distribution

Histogram

Pie chart

Arithmetic Mean

Correlation

Scatter diagram

Chi square test

24

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

LIMITATIONS OF THE STUDY

The project ndashMarket Penetration of IDBI Fortis Life Insurance at Chennai

has various limitations Some of the limitations that would be subjected to the research are

given below

1 Interaction of the researcher with uneducated people who are merely unaware of the

word questionnaire itself is one of the main limitations to the research

2 Unresponsive respondents failing to understand Insurance as a needful option for long

term financial safety

3 Direct sales channel adopted by most companies creating fear among respondents of

depriving their privacy if they share certain access information(Contact number)

4 To target and create correct representation of whole area of interest for study during

this short span of time is another limitation

5 The timing for undertaking this Project during the peak summer season had

detrimental effect in collecting the data from the respondents

CHAPTER 6

25

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

COMPANY PROFILE

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial

conglomerates ndash Indiarsquos premier development and commercial bank IDBI Indiarsquos leading

private sector bank Federal Bank and Europersquos premier Bancassurer Fortis each of which

enjoys a significant status in their respective business segments In this venture IDBI owns

48 equity while Federal Bank and Fortis own 26 equity each

IDBI Fortis launched its first set of products across India in March 2008 after receiving the

requisite approvals from the Insurance Regulatory Development Authority (IRDA) Today

we offer our services through a vast nationwide network across the branches of IDBI Bank

and Federal Bank in addition to a sizeable network of advisors and partners

At IDBI Fortis we endeavour to deliver products that provide value and convenience to the

customer Through a continuous process of innovation in product and service delivery we

intend to deliver world-class wealth management protection and retirement solutions to

Indian customers

IDBI BANK Ltd continues to be since its inception Indiarsquos premier industrial development

bank Created in 1956 to support Indiarsquos industrial backbone IDBI Bank has since evolved

into a powerhouse of industrial and retail finance Today it is amongst Indiarsquos foremost

commercial banks with a wide range of innovative products and services serving retail and

corporate customers in all corners of the country from over 620 branches and more than 1050

ATMs The Bank offers its customers an extensive range of diversified services including

project financing term lending working capital facilities lease finance venture capital loan

syndication corporate advisory services and legal and technical advisory services to its

corporate clients as well as mortgages and personal loans to its retail clients As part of its

development activities IDBI Bank has been instrumental in sponsoring the development of

key institutions involved in Indiarsquos financial sector ndash such as the Securities and Exchange

Board of India (SEBI) National Stock Exchange of India Limited (NSE) and National

Securities Depository Ltd

26

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

FEDERAL BANK is one of Indiarsquos leading private sector banks with a dominant presence

in the state of Kerala It has a strong network of over 640 branches and 670 ATMs spread

across India The bank provides over four million retail customers with a wide variety of

financial products Federal Bank is one of the first large Indian banks to have an entirely

automated and interconnected branch network The Bank operates on the core banking

platform and is RTGS NEFT enabled through which it offers state-of-the-art technology

enabled products and services In addition to interconnected branches and ATMs the Bank

has a wide range of services like Internet Banking Mobile Banking Tele Banking and Any

Where Banking debit cards online bill payment and call centre facilities to offer round the

clock banking convenience to its customers The Bank has been a pioneer in providing

innovative technological solutions to its customers and the Bank has won several awards and

recommendations

FORTIS is an international insurance group composed of AG Insurance the overall market

leader in life and non-life insurance in Belgium distributing its insurance products through

the network of BNP Paribas Fortis Bank and independent insurance brokers and Fortis

Insurance International with subsidiaries in the UK France Hong Kong Luxembourg (Non-

life) Germany Turkey Russia and Ukraine and joint ventures in Luxembourg (Life)

Portugal China Malaysia Thailand and India

Diagrammatic representation of Presence of Fortis worldwide

BelgiumFranceGermanyHong KongLuxembourgTurkeyUnited KingdomUkraine Joint ventures

27

Our Values

Transparency Crystal Clear communication to our partners and stakeholders

Value to Customers A product and service offering in which customers perceive

value

Rock Solid and Delivery on Promise This translates into being financially strong

operationally robust and having clarity in claims

Customer-friendly Advice and support in working with customers and partners

Profit to Stakeholders Balance the interests of customers partners employees

shareholders and the community at large

28

The Wealthsurance Foundation Plan enables you to save and build wealth to meet your

financial goals However unlike other investment alternatives it also enables you to achieve

your wealth goals even in the event of unexpected death accidents disablement or serious

illness

The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are

achieved by protecting that plan with insurance benefits

29

IDBI FORTIS PRODUCTS

WEALTHSURANCE

TERMSURANCE

INCOMESURANCE

BONDSURANCE

RETIRESURANCE

HOMESURANCE

MICROSURANCE

With Wealthsurance Foundation Plan you can

Save into the Plan as much money as you want whether at one time at regular

intervals or as per your convenience

Build your wealth by choosing the investments your savings go into and change them

from time to time as you wish

Get adequate life insurance cover with a unique built-in terminal illness benefit so

that the financial security of your loved ones is assured and your plans are always

realised

Get health accident and disablement benefits so you can ensure that your wealth-

building plans are not affected by unexpected medical expenses or loss of earning

capacity in case of serious ailments accidents or disablement

Grow wealth faster with tax free income thus making the whole package even more

attractive

30

Term insurance plan is a protection plan that allows you the flexibility to choose the type of

cover most suited to you

Get income protection benefits in case of untimely death of a major bread-earner

in the family

Fulfil the wishes and aspirations of the surviving family members

Get the advantage of lower premiums by entering at a lower age as this option

eases the increased liability

Choose the type of cover your need

Level cover

Increasing cover

Level cover with Return of Premium

You can pay (Single Limited) or regular premium

31

Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors

Termsurance Grameen Suraksha plan

IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance

plan targeted at the rural population It is an ideal plan to protect your family members in the

event of unfortunate demise of the major income earner

The key features of Termsurance Grameen Suraksha

Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725

or Rs19633 according to your budget

Eligibility This plan is available for men and women from age 18 up to age 50

Term This plan has a fixed term of three years

Death Benefit In the event of unfortunate death of the insured person during the

policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs

20000 depending on the single premium paid

Termsurance Grameen Bachat Yojana

32

Termsurance

Termsurance Grameen

Suraksha plan

Termsurance

Protection Plan

Termsurance Grameen

Bachat Yojana

IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan

targeted at the rural population It is an ideal plan to protect family members in the

event of unfortunate demise of the major income earner and also to save for specific

events like repayment of loan daughters marriage or childs education The plan

offers life cover at a nominal cost along with the option of refund of premiums paid

by you at maturity

Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual

Payout along with insurance protection which will help you to reach you goals with full

confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per

your individual and familyrsquos future requirements Moreover it also allows you to choose

Premium Payment Period Payout Period Payout Options and more

33

Guaranteed Return on your investment with life insurance

Bondsurance is a single premium plan which allows you to make a one-time investment and get

a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your

investment At the end of the chosen period you will receive a guaranteed maturity amount

Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In

case of death before the maturity date a Death Benefit which is also guaranteed will be paid

Thus you can get life insurance cover while earning an assured return on your investment

Guaranteed Return on your investment

Bondsurance gives you guaranteed returns on your one-time investment All you have to do is

choose the Maturity Benefit and the Maturity Period for your investment Based on your choice

the investment you have to make by way of single premium is determined

Maturity Benefit

You can choose any amount as the Maturity Benefit The amount you choose is guaranteed

34

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

The Wealthsurance Foundation Plan enables you to save and build wealth to meet your

financial goals However unlike other investment alternatives it also enables you to achieve

your wealth goals even in the event of unexpected death accidents disablement or serious

illness

The Wealthsurance Foundation Plan can ensure that your plans for wealth creation are

achieved by protecting that plan with insurance benefits

29

IDBI FORTIS PRODUCTS

WEALTHSURANCE

TERMSURANCE

INCOMESURANCE

BONDSURANCE

RETIRESURANCE

HOMESURANCE

MICROSURANCE

With Wealthsurance Foundation Plan you can

Save into the Plan as much money as you want whether at one time at regular

intervals or as per your convenience

Build your wealth by choosing the investments your savings go into and change them

from time to time as you wish

Get adequate life insurance cover with a unique built-in terminal illness benefit so

that the financial security of your loved ones is assured and your plans are always

realised

Get health accident and disablement benefits so you can ensure that your wealth-

building plans are not affected by unexpected medical expenses or loss of earning

capacity in case of serious ailments accidents or disablement

Grow wealth faster with tax free income thus making the whole package even more

attractive

30

Term insurance plan is a protection plan that allows you the flexibility to choose the type of

cover most suited to you

Get income protection benefits in case of untimely death of a major bread-earner

in the family

Fulfil the wishes and aspirations of the surviving family members

Get the advantage of lower premiums by entering at a lower age as this option

eases the increased liability

Choose the type of cover your need

Level cover

Increasing cover

Level cover with Return of Premium

You can pay (Single Limited) or regular premium

31

Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors

Termsurance Grameen Suraksha plan

IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance

plan targeted at the rural population It is an ideal plan to protect your family members in the

event of unfortunate demise of the major income earner

The key features of Termsurance Grameen Suraksha

Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725

or Rs19633 according to your budget

Eligibility This plan is available for men and women from age 18 up to age 50

Term This plan has a fixed term of three years

Death Benefit In the event of unfortunate death of the insured person during the

policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs

20000 depending on the single premium paid

Termsurance Grameen Bachat Yojana

32

Termsurance

Termsurance Grameen

Suraksha plan

Termsurance

Protection Plan

Termsurance Grameen

Bachat Yojana

IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan

targeted at the rural population It is an ideal plan to protect family members in the

event of unfortunate demise of the major income earner and also to save for specific

events like repayment of loan daughters marriage or childs education The plan

offers life cover at a nominal cost along with the option of refund of premiums paid

by you at maturity

Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual

Payout along with insurance protection which will help you to reach you goals with full

confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per

your individual and familyrsquos future requirements Moreover it also allows you to choose

Premium Payment Period Payout Period Payout Options and more

33

Guaranteed Return on your investment with life insurance

Bondsurance is a single premium plan which allows you to make a one-time investment and get

a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your

investment At the end of the chosen period you will receive a guaranteed maturity amount

Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In

case of death before the maturity date a Death Benefit which is also guaranteed will be paid

Thus you can get life insurance cover while earning an assured return on your investment

Guaranteed Return on your investment

Bondsurance gives you guaranteed returns on your one-time investment All you have to do is

choose the Maturity Benefit and the Maturity Period for your investment Based on your choice

the investment you have to make by way of single premium is determined

Maturity Benefit

You can choose any amount as the Maturity Benefit The amount you choose is guaranteed

34

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

With Wealthsurance Foundation Plan you can

Save into the Plan as much money as you want whether at one time at regular

intervals or as per your convenience

Build your wealth by choosing the investments your savings go into and change them

from time to time as you wish

Get adequate life insurance cover with a unique built-in terminal illness benefit so

that the financial security of your loved ones is assured and your plans are always

realised

Get health accident and disablement benefits so you can ensure that your wealth-

building plans are not affected by unexpected medical expenses or loss of earning

capacity in case of serious ailments accidents or disablement

Grow wealth faster with tax free income thus making the whole package even more

attractive

30

Term insurance plan is a protection plan that allows you the flexibility to choose the type of

cover most suited to you

Get income protection benefits in case of untimely death of a major bread-earner

in the family

Fulfil the wishes and aspirations of the surviving family members

Get the advantage of lower premiums by entering at a lower age as this option

eases the increased liability

Choose the type of cover your need

Level cover

Increasing cover

Level cover with Return of Premium

You can pay (Single Limited) or regular premium

31

Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors

Termsurance Grameen Suraksha plan

IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance

plan targeted at the rural population It is an ideal plan to protect your family members in the

event of unfortunate demise of the major income earner

The key features of Termsurance Grameen Suraksha

Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725

or Rs19633 according to your budget

Eligibility This plan is available for men and women from age 18 up to age 50

Term This plan has a fixed term of three years

Death Benefit In the event of unfortunate death of the insured person during the

policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs

20000 depending on the single premium paid

Termsurance Grameen Bachat Yojana

32

Termsurance

Termsurance Grameen

Suraksha plan

Termsurance

Protection Plan

Termsurance Grameen

Bachat Yojana

IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan

targeted at the rural population It is an ideal plan to protect family members in the

event of unfortunate demise of the major income earner and also to save for specific

events like repayment of loan daughters marriage or childs education The plan

offers life cover at a nominal cost along with the option of refund of premiums paid

by you at maturity

Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual

Payout along with insurance protection which will help you to reach you goals with full

confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per

your individual and familyrsquos future requirements Moreover it also allows you to choose

Premium Payment Period Payout Period Payout Options and more

33

Guaranteed Return on your investment with life insurance

Bondsurance is a single premium plan which allows you to make a one-time investment and get

a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your

investment At the end of the chosen period you will receive a guaranteed maturity amount

Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In

case of death before the maturity date a Death Benefit which is also guaranteed will be paid

Thus you can get life insurance cover while earning an assured return on your investment

Guaranteed Return on your investment

Bondsurance gives you guaranteed returns on your one-time investment All you have to do is

choose the Maturity Benefit and the Maturity Period for your investment Based on your choice

the investment you have to make by way of single premium is determined

Maturity Benefit

You can choose any amount as the Maturity Benefit The amount you choose is guaranteed

34

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Term insurance plan is a protection plan that allows you the flexibility to choose the type of

cover most suited to you

Get income protection benefits in case of untimely death of a major bread-earner

in the family

Fulfil the wishes and aspirations of the surviving family members

Get the advantage of lower premiums by entering at a lower age as this option

eases the increased liability

Choose the type of cover your need

Level cover

Increasing cover

Level cover with Return of Premium

You can pay (Single Limited) or regular premium

31

Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors

Termsurance Grameen Suraksha plan

IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance

plan targeted at the rural population It is an ideal plan to protect your family members in the

event of unfortunate demise of the major income earner

The key features of Termsurance Grameen Suraksha

Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725

or Rs19633 according to your budget

Eligibility This plan is available for men and women from age 18 up to age 50

Term This plan has a fixed term of three years

Death Benefit In the event of unfortunate death of the insured person during the

policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs

20000 depending on the single premium paid

Termsurance Grameen Bachat Yojana

32

Termsurance

Termsurance Grameen

Suraksha plan

Termsurance

Protection Plan

Termsurance Grameen

Bachat Yojana

IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan

targeted at the rural population It is an ideal plan to protect family members in the

event of unfortunate demise of the major income earner and also to save for specific

events like repayment of loan daughters marriage or childs education The plan

offers life cover at a nominal cost along with the option of refund of premiums paid

by you at maturity

Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual

Payout along with insurance protection which will help you to reach you goals with full

confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per

your individual and familyrsquos future requirements Moreover it also allows you to choose

Premium Payment Period Payout Period Payout Options and more

33

Guaranteed Return on your investment with life insurance

Bondsurance is a single premium plan which allows you to make a one-time investment and get

a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your

investment At the end of the chosen period you will receive a guaranteed maturity amount

Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In

case of death before the maturity date a Death Benefit which is also guaranteed will be paid

Thus you can get life insurance cover while earning an assured return on your investment

Guaranteed Return on your investment

Bondsurance gives you guaranteed returns on your one-time investment All you have to do is

choose the Maturity Benefit and the Maturity Period for your investment Based on your choice

the investment you have to make by way of single premium is determined

Maturity Benefit

You can choose any amount as the Maturity Benefit The amount you choose is guaranteed

34

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Termsurance comes with three cover options which you can select on the basis your requirement Termsurance is designed with a host of benefits amp options aimed at satisfying your every need It not only allows you to customise your plan as per your individual and your familyrsquos needs but it comes with a host of benefits like convenient insurance cover options flexible premium payment terms choice of policy term and lots more flexible optionsUnder Termsurance three Investment options are available for Investment catering to different Insurance need of the Investors

Termsurance Grameen Suraksha plan

IDBI Fortis Termsurance Grameen Suraksha is a low-cost simple term individual insurance

plan targeted at the rural population It is an ideal plan to protect your family members in the

event of unfortunate demise of the major income earner

The key features of Termsurance Grameen Suraksha

Premium You can choose a fixed single premium of Rs 4908 Rs 9817 Rs 14725

or Rs19633 according to your budget

Eligibility This plan is available for men and women from age 18 up to age 50

Term This plan has a fixed term of three years

Death Benefit In the event of unfortunate death of the insured person during the

policy term we will pay a death benefit of Rs 5000 Rs 10000 Rs 15000 or Rs

20000 depending on the single premium paid

Termsurance Grameen Bachat Yojana

32

Termsurance

Termsurance Grameen

Suraksha plan

Termsurance

Protection Plan

Termsurance Grameen

Bachat Yojana

IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan

targeted at the rural population It is an ideal plan to protect family members in the

event of unfortunate demise of the major income earner and also to save for specific

events like repayment of loan daughters marriage or childs education The plan

offers life cover at a nominal cost along with the option of refund of premiums paid

by you at maturity

Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual

Payout along with insurance protection which will help you to reach you goals with full

confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per

your individual and familyrsquos future requirements Moreover it also allows you to choose

Premium Payment Period Payout Period Payout Options and more

33

Guaranteed Return on your investment with life insurance

Bondsurance is a single premium plan which allows you to make a one-time investment and get

a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your

investment At the end of the chosen period you will receive a guaranteed maturity amount

Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In

case of death before the maturity date a Death Benefit which is also guaranteed will be paid

Thus you can get life insurance cover while earning an assured return on your investment

Guaranteed Return on your investment

Bondsurance gives you guaranteed returns on your one-time investment All you have to do is

choose the Maturity Benefit and the Maturity Period for your investment Based on your choice

the investment you have to make by way of single premium is determined

Maturity Benefit

You can choose any amount as the Maturity Benefit The amount you choose is guaranteed

34

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

IDBI Fortis Termsurance Grameen Bachat Yojana is a low-cost risk protection plan

targeted at the rural population It is an ideal plan to protect family members in the

event of unfortunate demise of the major income earner and also to save for specific

events like repayment of loan daughters marriage or childs education The plan

offers life cover at a nominal cost along with the option of refund of premiums paid

by you at maturity

Incomesurance is loaded with lots of benefits which ensure that you get Guaranteed Annual

Payout along with insurance protection which will help you to reach you goals with full

confidence Incomesurance Plan is very flexible and allows you to customise your Plan as per

your individual and familyrsquos future requirements Moreover it also allows you to choose

Premium Payment Period Payout Period Payout Options and more

33

Guaranteed Return on your investment with life insurance

Bondsurance is a single premium plan which allows you to make a one-time investment and get

a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your

investment At the end of the chosen period you will receive a guaranteed maturity amount

Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In

case of death before the maturity date a Death Benefit which is also guaranteed will be paid

Thus you can get life insurance cover while earning an assured return on your investment

Guaranteed Return on your investment

Bondsurance gives you guaranteed returns on your one-time investment All you have to do is

choose the Maturity Benefit and the Maturity Period for your investment Based on your choice

the investment you have to make by way of single premium is determined

Maturity Benefit

You can choose any amount as the Maturity Benefit The amount you choose is guaranteed

34

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Guaranteed Return on your investment with life insurance

Bondsurance is a single premium plan which allows you to make a one-time investment and get

a guaranteed amount on maturity You can choose a maturity period of 5 or 10 years for your

investment At the end of the chosen period you will receive a guaranteed maturity amount

Besides the guaranteed maturity amount Bondsurance also provides a life insurance cover In

case of death before the maturity date a Death Benefit which is also guaranteed will be paid

Thus you can get life insurance cover while earning an assured return on your investment

Guaranteed Return on your investment

Bondsurance gives you guaranteed returns on your one-time investment All you have to do is

choose the Maturity Benefit and the Maturity Period for your investment Based on your choice

the investment you have to make by way of single premium is determined

Maturity Benefit

You can choose any amount as the Maturity Benefit The amount you choose is guaranteed

34

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

and will be paid to you on the maturity date

Maturity Period

You can choose the Maturity Period which can be either 5 or 10 years The Maturity Period

is the policy term of your Bondsurance Plan

Single Premium Amount

The single premium amount is based on your choice of Maturity Benefit Maturity Period

and the age of the Insured Person in completed years as on the date of application as per the

Premium Table below Minimum single premium payable is Rs 20000 There is no

maximum limit

The IDBI Fortis Retiresurance Pension Plan is a Unit Linked Insurance Plan that helps you

accumulate your funds for your retirement The plan is tailor-made for the ever changing

investment environment with built-in flexibilities to manage your investment mix On

35

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

retirement you can use the maturity proceeds to buy an annuity so that you have a monthly

paycheck for life even after you stop earning your regular income

HOMESURANCE

The Homesurance Protection Plan is a reducing term plan which provides insurance cover

equal to the outstanding balance of your home loan In the unfortunate event of death of the

home loan borrower the insurance cover enables repayment of the home loan liability

Protection against loan liability

A home loan is usually a large liability and if the breadwinner who would repay the loan were

not to be there it could become a serious burden to the family The Homesurance Protection

Plan protects against this liability The specifics of the plan are as follows

36

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

1 Cover Amount reduces over time

Your outstanding home loan amount normally reduces over time as you repay by way of

monthly instalments Accordingly the cover amount under the Homesurance Protection Plan

also reduces with time to reflect the outstanding loan amount At the time you take the plan

you will receive a Policy Schedule based on the amount and terms of your loan which will

show you the reducing cover amount over time

2 Benefit Amount is paid on death

In the event of death of the insured we will pay either the cover amount as per the

Homesurance Protection Plan Policy Schedule as on the date of death or the actual

outstanding balance in the insured loan account as on the date of death whichever is higher

Death due to any cause including illness or accident is covered under the plan Death whether

in India or abroad is also covered under the plan

The IDBI Fortis Group Microsurance Plan provides affordable life insurance cover to groups The plan is extremely useful to Micro Finance Institutions Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group memberrsquos families The plan can also be used for providing loan protection to the group memberrsquos families

A Affordable Protection

Life insurance cover for group members at affordable cost

37

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

B Wide Coverage

Members aged between 18 to 60 years can be covered

Sum insured between Rs 5000 to Rs 50000 per member can be availed

C Hassle-Free Issuance

No medical reports required even up to the maximum sum insured of Rs 50000

CHAPTER 7

DATA ANALYSIS AND INTERPRETATION

The collected data is analysed through simple percentage and charts and other Statistical tools

and these are used to interpret the results from the data The inferences given below the

Table will make the reader to understand the problem as well as the solution to the problem

Findings suggestions and conclusion to this project are based on data analysis

38

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

TABLE 1

Table showing Market Penetration of companies based on Geographical coverage due to number of branches in Chennai

Company Number Of BranchesLIC 2SBI Life 9Kotak Mahindra 4IDBI Fortis 1Bajaj Allianz 3ICICI Prudential 10

CHART 1

Chart showing Market Penetration of companies based on Geographical coverage

INTERPRETATION It can be said based on above chart and table that ICICI prudential has the highest penetration in the market Geographical coverage though has certain disadvantage for the company to meet its large fixed and operating cost which can delay companies breakeven but at same time enhances brand visibility and in Insurance industry brand awareness is very important to source business from clients So IDBI Fortis should concentrate to enhance its reach as to cover large geography of Chennai from single branch would be tough for the company

39

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

TABLE 2

Table showing Percentage coverage of companies (Based on Brand Visibility)

Company PercentageLIC 7

ICICI PRU 35SBI LIFE 31

KOTAK MAHINDRA 14BAJAJ ALLIANZ 10

IDBI Fortis 3

CHART 2

Chart showing visibility for the companies in Chennai based On number of branches

40

LIC

SBI LIF

E

KOTAK MAHIN

DRA

IDBI F

ORTIS

BAJAJ A

LLIANZ

ICIC

I02468

1012

2

9

4

13

10

Chart showing Market Penetration of companies based on Ge-ographical coverage

COMPANY

NU

MB

ER

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

INTERPRETATION

ICICI has largest coverage in the market covering 35 of the area

This puts ICICI in advantageous position in comparison to other companies in catering to

large customer base effectively

TABLE 3

Table showing Market penetration for of IDBI Fortis Life Insurance in

comparison to other companies based on number of Investors

SAMPLE SIZE 115

Company Number of Investor

LIC 77

SBI LIFE 19

Kotak life 13

ICICI Prudential 17

Bajaj Allianz 10

IDBI Life Insurance 8

CHART 3

Chart showing Market Penetration of IDBI with respect to other companies

41

7

31

14

310

34

PERCENTAGE COVERAGE BASED ON NO OF BRANCHES

LICSBI LIFEKOTAK MAHINDRAIDBI FORTISBAJAJ ALLIANZICICI

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

LIC SBI LIFE Kotak life ICICI Prudential Bajaj Allianz IDBI Life Insurance0

102030405060708090

77

1913 17

10 8

C hart showing Market Penetration of IDBI Fortis Life In-surance based on Investors

Company

No

Inve

stor

INTERPRETATION LIC has the highest frequency of investors This phenomenal performance for the company if it is compared with other companies as it has very few branches to cater to the investors But it has to be also looked into that the company is the oldest entity in the Insurance industry

TABLE 4

Table showing percentage market share of Insurance companies

Company Market Share ()LIC 53

SBI Life 13ICICI PRU 12

Kotak Mahindra 9Bajaj Allianz 7IDBI Fortis 6

CHART 4

Chart showing market capitalisation of companies based on number of investors

42

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

53

13

9

12

7

6

Market Capitalisation

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION

LIC has the largest market capitalisation IDBI is lagging behind even among other private players But within two years of its existence into the industry and penetrate with this much percent capitalisation in a perfectly competitive market is a substantial foray Among the private players SBI Life and ICICI Pru rules the rest

TABLE 5

Correlation Table showing correlation between Income level of Investor and Investment into ULIP

Correlation Table

INCOME INVESTMENT

INCOME Pearson Correlation 1 733

Sig (2-tailed) 159

N 5 5

INVESTMENT Pearson Correlation 733 1

Sig (2-tailed) 159

N 5 5

INTERPRETATION There is high degree of correlation between income level of respondents and their investment into ULIPAs ULIP is a new investment option introduced in the market by Insurance companies which has exposure to market conditions it is very much obvious that low income group families are unwilling to invest in risky options This is another good lead for the company as its Termsurance and Microsurance policy has guaranteed return to target this segment for this product

43

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

CHART 5

Scatter diagram to demonstrate coefficient of Determination between Income Level and Investment in ULIP by respondents

0 100000 200000 300000 400000 500000 600000 700000 80000005

1015202530354045

f(x) = 46031746031746E-05 x + 896031746031746Rsup2 = 0534643593243931

SCATTER DIAGRAM TO ASCERTAIN COEFFICIENT OF DE-TERMINATION BETWEEN INCOME AND INVESTMENT IN ULIP

INCOME

FREQ

UEN

CY

INTERPRETATION Coefficient of determination(r 2 ) =0534This means that fifty three percent of respondents looked into their income level before investing in ULIP

TABLE 6

Table showing awareness level of different Investment options available in the Market

INVESTMENT OPTION FREQUENCY

Saving FD 97

Government Scheme 46

Shares 38

Insurance 83

ULIP 29

Mutual Funds 31

CHART 6

Chart showing awareness level of different Investment options available in the Market

44

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Saving FD Government Scheme

Shares Insurance ULIP Mutual Funds0

20

40

60

80

100

12097

4638

83

29 31

CHART SHOWING AWARENESS LEVEL OF INVESTORS FOR DIFFERENT INVESTMENT OPTIONS

Investment options

Freq

uen

cy

INTERPRETATION Insurance Fixed deposits have a relatively high degree of awareness level among respondents But itrsquos a very surprising fact that government schemes like NSC Post office deposits have a relatively low awareness level

TABLE 7

Table showing Market Penetration of different Investment options on actual Investment continuum by respondents

INVESTMENT OPTIONS Frequency

SAVINGSFD 79

GOVERNMENT SCHEMES 26

SHARES 19

INSURANCE 73

ULIP 23

MUTUAL FUNDS 13

CHART 7

Chart showing Market penetration of different Investment options

45

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

SAVIN

GSFD

GOVERNMENT SC

SHARES

INSU

RANCEULIP

MUTUAL FUNDS

0102030405060708090 79

2619

73

2313

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

INVESTMENT OPTIONS

FRE

QU

EN

CY

INTERPRETATION

Insurance has the second highest level of Investors People have understood the importance of Insurance as an important investment tool But this large number of investors is particularly due to LICrsquos traditional plan which covers life of the insured person

TABLE 8

Table showing Penetration between awareness level and Investment into various Investment Options

INVESTMENT OPTION AWARENESS INVESTMENTSaving FD 97 79Government Scheme 46 26Shares 38 19Insurance 83 73ULIP 29 23Mutual Funds 31 13

ARITHMETIC MEAN= sumXNAWARENESS LEVEL= 28ACTUAL INVESTMENT= 2

INTERPRETATION Arithmetic mean of 28 for awareness level signifies that on average respondents were aware of more than two investment options and has made investment into at least two options that they are aware of

46

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

CHART 8

Chart showing Market Penetration of Different Investment Options based on actual investment

34

11

8

31

10

6

CHART SHOWING MARKET PENETRATION OF DIFFERENT INVESTMENT OPTIONS

SAVINGSFDGOVERNMENT SCHEMESSHARESINSURANCEULIPMUTUAL FUNDS

INTERPRETATION Fixed deposits and Insurance remains highest sought after Investment options Sixty five percent of the respondentrsquos investment goes in savings schemes fixed deposits and Insurance combined together

TABLE 9

Correlation Table showing correlation between awareness level of different investment schemes amp their investment of respondents

Correlation Table

Awareness Investment

Awareness Pearson Correlation 1 980

Sig (2-tailed) 001

N 6 6

Investment Pearson Correlation 980 1

Sig (2-tailed) 001

N 6 6

Correlation is significant at the 001 level (2-tailed)

INTERPRETATION There is high degree of correlation between awareness level and actual investment

47

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

CHART 9Scatter diagram to demonstrate coefficient of determination between awareness

level and their Investment in different options

0 10 20 30 40 50 60 70 80 900

20

40

60

80

100

120

f(x) = 0969734935985279 x + 16341959985905Rsup2 = 0961351060458028

NO OF INVESTORS

Aw

aren

ess

INTERPRETATION Coefficient of determination (r2) =0 96 Ninety percent of the respondents made their investments only in those options about which they are aware of So IDBI Fortis should enhance awareness of their product through their agency channel or employing integrated marketing communications for robust and stable penetration and growth in the market It is necessary to ascertain this parameter regarding Investors relation to their investment based on their awareness level because the result can be used to have insight into investment cosmopolite of respondents

TABLE 10

Table showing Frequency distribution for Objective of Investment of respondents

OBJECTIVE FREQUENCY

RETURN 38

TAX SHELTER 19

CHILDREN EDUCATION 19

PENSION 6

FUTURE NEEDS 33

CHART 10

48

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Chart showing Objective of Investors for which Investments are made

33

1717

5

29

CHART SHOWING OBJECTIVE OF INVESTMENT OF RESPONDENTS

RETURNTAX SHELTERCHILDREN EDUCATIONPENSIONFUTURE NEEDS

INTERPRETATION

Fulfilling their future needs and high returns constitutes about more than half of the respondents choice for making investments in different schemes

TABLE 11

Table showing Market Penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

COMPANY TRADITIONAL ULIPLIC 104 39SBI LIFE 9 23Kotak life 5 18ICICI Prudential 7 22Bajaj Allianz 3 14IDBI Life Insurance 2 11

49

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

CHART 11

Chart showing Market penetration of IDBI Fortis for Traditional and ULIP in comparison to other companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

dentia

l

Bajaj A

llian

z

IDBI L

ife In

sura

nce0

10

20

30

40

50

60 55

94 5

1 1

22

10 9 12 9 7

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL amp ULIP PLAN OF IDBI

TRADITIONALULIP

COMPANY

NO

OF

IN

VE

STO

RS

INTERPRETATIONLIC is the market Leader for Investment in both schemes ULIP as well as Traditional plan

TABLE 12

Table showing Percentage Market Penetration of companies based on Investment into Traditional Plan

Company Market Share()LIC 73

SBI Life 12ICICI PRU 7

Kotak Mahindra 5Bajaj Allianz 2IDBI Fortis 1

CHART 12

50

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Chart showing Market penetration of companies based on Investment in traditional plan

73

12

57

1 1

CHART SHOWING OF MARKET PENETRATION OF TRADITIONAL PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION LIC has highest percentage of investors in traditional plan This indicates that investors still rely on LIC for making investment into schemes which is for their life cover Investors want at least one option which gives them secure return in the case of any unpredicted occurrence of events Private companies and IDBI Fortis is way behind in attracting investment into such schemes

TABLE 13

Table showing Percentage Market Penetration based on Investment in ULIP

Company Market Share()LIC 32

SBI Life 15ICICI PRU 17

Kotak Mahindra 13Bajaj Allianz 13IDBI Fortis 10

51

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

CHART 13

Chart showing Percentage Market Penetration of companies based on Investment in ULIP

32

14

13

17

13

10

CHART SHOWING OF MARKET PENETRATION OF ULIP PLAN OF IDBI

LICSBI LIFEKotak lifeICICI PrudentialBajaj AllianzIDBI Life Insurance

INTERPRETATION IDBI Fortis has been able to secure some schemes in ULIP Still LIC is way ahead of other companies ICICI and SBI Life among private players are market leaders Most of the companies are competing with each other towards generating business into ULIP whereas LIC remains market leader in traditional plan customer base This enables the company to take lead in bringing business into ULIP by cross selling to its existing large customer base

TABLE 14

Table showing Awareness level of Companies

COMPANY Awareness Level

LIC 105

SBI LIFE 30

Kotak life 22

ICICI Prudential 27

Bajaj Allianz 18

IDBI Life Insurance 13

52

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

CHART 14

Chart showing awareness level of companies

LIC

SBI L

IFE

Kotak li

fe

ICIC

I Pru

den

Bajaj A

llian

z

IDBI L

ife In

s

0

20

40

60

80

100

120105

3022

2718

13

Awareness Level

Company

Freq

uen

sy

INTERPRETATION

The awareness level of LIC is highest IBDI Life insurance is way behind even among the private company

TABLE 15

Market Penetration of IDBI Fortis schemes

SAMPLE SIZE 100This sample was collected from investors of IDBI to ascertain the preference and penetration of IDBI schemes

SCHEMES NO OF INVESTORS

Wealthsurance 47Retiresurance 12

Bondsurance 7

Incomesurance 19

Homesurance 6

53

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Termsurance 7

Microsurance 2

CHART 15

Chart showing Market Penetration of IDBI Fortis schemes

Wealthsurance Retiresurance Bondsurance Incomesurance Homesurance Termsurance Microsurance0

5

10

15

20

25

30

35

40

45

50 47

12

7

19

6 7

2

CHART SHOWING MARKET PENETRATATION OF IDBI SCHEMES

SCHEMES

NO

OF

INV

EST

OR

S

INTERPRETATION Wealthsurance has highest number of investors This chart has been prepared to demonstrate investorrsquos choice for making investment into the company

TABLE 16

CHI-SQUARE (2 ) TEST FOR MARKET PENETRATION OF IDBI FORTIS LIFE

INSURANCE CO LIMITED

H0=Market penetration of IDBI Fortis Same as other companies

H1=Market penetration of IDBI Fortis Not same as other companies

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 2 9 4 10 3 1 29

INVT IN TR PLAN

55 9 4 5 1 1 75

INVT IN ULIP 22 10 9 12 9 7 69

AWARENESS 105 30 22 27 18 13 215

Total 184 58 39 54 31 22 388

54

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Expected Values

LIC SBI LIFE KOTAK LIFE

ICICI PRU

BAJAJ ALLIANZ

IDBI FORTIS

Total

BRANCHES 1375 434 291 404 232 164 29

INVT IN TR PLAN

3557 1121 754 1044 599 425 75

INVT IN ULIP 3272 1031 694 960 551 391 69

AWARENESS 10196 3214 2161 2992 1718 1219 215

Total 184 58 39 54 31 22 388

Hypothesis TestingDOF 15

2 stat 5693

p-Value 000000

Alpha 5

Result Reject

INTERPRATATION

On the basis of 2 test employed on the data given above it can be concluded that market

penetration of IDBI Fortis is not optimum (Null hypothesis rejected)

2 cal gt 2

tab therefore H0 is rejected Therefore market penetration of IDBI FORTIS is not

same as other companies

SWOT ANALYSIS OF IDBI FORTIS LIFE INSURANCE

ON DATA INTERPRETATION

SRTENGTH

Brand name of IDBI bank which is very favourable for the company to source

business

Brand name of Fortis group one of largest hospital group offering health

services since decades

Good knowledgeable experienced staff having profound experience in

Insurance industry

55

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Federal bank one of the oldest private players in banking sector in India

having stake in the company

WEAKNESS

Minimal geographical coverage

Awareness level very low

Few product options to source business

OPPORTUNITY

To penetrate into low income group segment

Booming insurance industry

To source client through corporate hospital channel

THREATS

Large number of companies planning to enter Insurance industry

Already well established brands much ahead of IDBI Fortis

CHAPTER 8

FINDINGS

Market penetration of IDBI FORTIS is not same as other companies

LIC is market leader way ahead of all other private companies in sourcing business

56

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

ICICI Prudential has the largest geographical coverage

IDBI Fortis Life Insurance has to go long way to catch up with well established

brands

Traditional plan is still product of choice among investors despite several companies

trying to woo investment in ULIP

There is high degree of correlation between awareness level and actual investment

There is high degree of correlation between income level of respondents and their

investment into ULIP

Wealthsurance has highest market penetration among IDBI Fortis products

CHAPTER 9

RECOMMENDATIONS

57

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

IDBI Fortis should concentrate on Bondsurance and Microsurance to tap

the unexplored low income group segment

Company should enhance its Brand awareness level as well as product

awareness level with the help of integrated marketing communications

IDBI Fortis should try to increase number of branches in order to increase

its presence

Company should employ a new channel that is corporate hospital channel

to encase large hospital infrastructure of it stakeholder Fortis

Company should recruit more advisors to penetrate in the market

Company should come with Low premium policies to gain a significant

Insight into the market

CHAPTER 10

CONCLUSION

58

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

The Insurance Industry is becoming fiercely competitive with advent of large number of

companies into this sectorLIC remains top brand despite all the competition Investors

evaluate number of factors like awareness level of product Brand image of company and

products ability to meet their requirements before making investment into any plan Most of

the companies are behind upper middle and high income group to source business even

though market potential from other income group is also significant and it can also be

attributed to LICrsquos still maintaining lead over other companies

APPENDICES

QUESTIONNAIRE

Name

Address

59

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Mobile No E-mail

Marital Status

Occupation

1048576 Self employed 1048576 Salaried 1048576 Housewife 1048576 Retiredpensioner 1048576 Others ______________

Annual Income

1048576 lt 1 lac 1048576 1 lac ndash 15 lacs 1048576 15 lacs ndash 25 lacs 1048576 25 lacs ndash 5 lacs 1048576 Above 5 lacs

1 Are you aware of the following investment options

1048576 SavingsFD 1048576 Government Schemes(Nsc Post office etc)

1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

2 Have you invested in any of the following investment schemes

1048576 SavingsFD 1048576 Government Schemes(NscPost office etc)1048576 Shares 1048576 Insurance1048576 ULIP 1048576 Mutual Funds

3 Objective for which Investment is made

1048576 Return 1048576 Tax shelter1048576 Children Education 1048576 Pension 1048576 Any other future needs

4 Have you invested in Market linked plans (ULIP) of IDBI Fortis

1048576 Yes 1048576 No

60

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

5 Have you invested in any of the Life Insurance Companies listed below

1048576 LIC 1048576 SBI Life Insurance1048576 Kotak Mahindra Life Insurance 1048576 ICICI Prudential1048576 Bajaj Allianz 1048576 IDBI Fortis Life Insurance

6 Which company according to you serves your Investment needs in Insurance schemes best

Insurance Company Traditional plan ULIP plan

LIC 1048576 1048576SBI Life Insurance 1048576 1048576Kotak Mahindra Life Insurance 1048576 1048576ICICI Prudential 1048576 1048576Bajaj Allianz 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576

7 Which Insurance plan of IDBI Fortis do you know

1048576 Wealthsurance 1048576 Incomesurance1048576 Retiresurance 1048576 Homesurance1048576 Bondsurance 1048576 Termsurance

8 Reasons for selecting the IDBI Fortis Products

1048576 IDBI Bank 1048576 Fortis group 1048576 No allocation charges 1048576 Guaranteed amp High return

9 What do you expect from a Unit-linked plan (ULIP)

1048576 InvestmentSavings 1048576 Flexibility 1048576 Transparency 1048576 Liquidity 1048576 Tax benefits 1048576 Life protection1048576 All of the above

10 Your preference of IDBI Insurance schemes over Competitors schemes (Other companies)

61

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

Company Name Term-Surance

Wealth-surance

Income-surance

Retire-surance

Bond-surance

LIC 1048576 1048576 1048576 1048576 1048576SBI Life Insurance 1048576 1048576 1048576 1048576 1048576Kotak Mahindra Life Insurance

1048576 1048576 1048576 1048576 1048576

ICICI Prudential 1048576 1048576 1048576 1048576 1048576Bajaj Allianz 1048576 1048576 1048576 1048576 1048576IDBI Fortis Life Insurance 1048576 1048576 1048576 1048576 1048576

11 Level of risk that you are willing to take in ULIP

1048576 High riskHigh Return 1048576 Moderate risk Moderate Return 1048576 Low riskLow Return

12 How would you rate the service of the IDBI Fortis agency 1048576 Very good 1048576 Good 1048576 Bad 1048576 Very bad

13 Which aspect of customer service of IDBI Fortis distinguishes it from others1048576 Promptness in releasing policy document 1048576 Agency knowledge about Insurance

scheme1048576 Reminder about renewal premium 1048576 Transparency adopted in quantum of claim

Settlement

14Any valuable suggestions helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip

THE ABOVE INFORMATIONS PROVIDED WILL BE USED BY THE COMPANY INTERNALLY amp WILL BE KEPT SECERT

REFERENCE

62

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63

WEBSITES

wwwidbifortiscom

wwwwikipediaorg

wwwsebiin

wwwirdain

wwwscribdorg

wwwprenhallcom

BOOKS-

Marketing management11th edition

- By Philip Kotler

Statistical Methods

- By S P Gupta

Risk management and insurance

-By Harold D Skipper W Jean know

Research Methodology Methods amp Techniques

-Dr C R Kothari

63